Faith Nyasuguta
Dangote Petroleum Refinery is gearing up to launch a nationwide fuel distribution programme on 15 August 2025, targeting a major upgrade of Nigeria’s downstream petroleum sector. The initiative will deliver both petrol (Premium Motor Spirit) and diesel to a wide range of users – fuel stations, manufacturers, telecom firms, aviation services, and other major consumers- with complementary logistics support to streamline operations and reduce costs.
To ensure fuel reaches all corners of Nigeria efficiently, Dangote is deploying a robust fleet of 4,000 brand-new Compressed Natural Gas (CNG) tankers. These eco-friendly vehicles will transport fuel free of charge to buyers, removing traditional logistical hurdles and offering fuel stations direct support- saving time and money.
In parallel, the refinery is investing in CNG refuelling infrastructure, including “daughter booster” stations and over 100 additional CNG tankers, to ensure smooth and sustainable distribution even after launch. By eliminating transport bottlenecks, Dangote aims to lower fuel costs and reduce inflationary pressure, particularly benefiting industries like manufacturing, telecommunications, and aviation.
As part of the programme’s commercial incentives, large-scale buyers purchasing at least 500,000 litres will be eligible for a two-week interest-free credit line of the same volume, provided via bank guarantee. This flexible arrangement supports manufacturers and other high-volume users, helping improve cash flow and operational planning.
The refinery describes the rollout as a “strategic programme” reflecting its commitment to energy efficiency, sustainability, and inclusive economic growth. Dangote also acknowledges ongoing government collaboration – particularly under the Naira-for-Crude scheme, which stabilises fuel supply amid volatile global conditions.
Industry analysts note that this initiative could revitalise underused petrol stations, create jobs, reduce production costs, and stimulate small and medium business growth. It also aims to soften inflation by providing more affordable fuel. Dangote’s aggressive move follows an earlier government shift, which ended NNPC’s exclusive purchasing rights and opened the market to private fuel buyers.
Nigeria’s Dangote Refinery – the world’s largest single-train refinery, with a capacity of 650,000 barrels per day – has long pursued full domestic distribution of petrol and diesel. While it began partial operations in early 2024, local distribution has been limited by logistics. This new programme represents the most ambitious domestic rollout yet.
By providing free CNG delivery, bulk buyer credits, and expanding infrastructure, Dangote is confronting long standing downstream inefficiencies. If successful, the initiative could accelerate Nigeria’s shift away from fuel imports, support President Tinubu’s economic reforms, and reinforce the refinery’s mission to reduce costs, secure supply, and enhance fuel access for all Nigerians.
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