Dangote Refinery to Spend Over ₦1tn Yearly on Free Fuel Distribution Across Nigeria
The Dangote Petroleum Refinery has revealed it will absorb over ₦1.07 trillion annually in logistics costs as part of a nationwide fuel distribution strategy aimed at reducing pump prices and supporting economic growth. This bold move is part of the company’s larger plan to deliver petroleum products directly to marketers and industrial consumers across Nigeria starting August 15.
In a statement released on Sunday, the refinery confirmed it has already invested more than ₦720 billion into the initiative. This includes the purchase of 4,000 Compressed Natural Gas (CNG)-powered trucks and the construction of CNG fueling stations across the country. The goal, according to the company, is to eliminate distribution bottlenecks, reduce transportation costs, and help Nigerians save more than ₦1.7 trillion annually in energy spending.
The refinery plans to supply 65 million litres of refined fuel per day, including 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel. By handling distribution internally and absorbing the estimated ₦45-per-litre logistics cost, the Dangote Group aims to ease inflation and bring down fuel prices nationwide.
“This initiative is poised to significantly benefit over 42 million Micro, Small and Medium Enterprises by reducing energy costs and enhancing profitability,” the statement read. The project is also expected to breathe new life into dormant fuel stations and stimulate local economies through job creation.
According to the company, the logistics programme will create more than 15,000 direct jobs, including truck drivers, CNG station managers, and attendants. The refinery further stated that these efforts align with its broader mission to enhance energy efficiency, promote environmental sustainability, and support national development.
In addition to its economic impact, the initiative is also designed to discourage the cross-border smuggling of petroleum products by ensuring better distribution control and supply tracking.
As Nigerians grapple with high fuel prices and inflation, the Dangote Refinery’s approach could offer much-needed relief to consumers and businesses alike. With the private sector stepping in to address critical infrastructure gaps, this initiative may mark a turning point in Nigeria’s fuel supply and distribution landscape.