Table of Contents
Key Points
- Dangote Refinery deploys 4,000 CNG trucks in $480 million boost to Nigeria’s fuel distribution network.
- Initiative targets N1.7 trillion ($1.11 billion) annual savings, creates 15,000 jobs, and cuts carbon emissions.
- Expansion to 700,000 barrels per day to strengthen Nigeria’s energy security and reduce fuel imports.
Dangote Petroleum Refinery, Africa’s largest refinery owned by the continent’s richest billionaire Aliko Dangote, has received its first batch of 4,000 compressed natural gas (CNG) trucks in a N720 billion ($470 million) investment aimed at overhauling Nigeria’s fuel distribution system.
The CNG-powered fleet, imported through Lagos’ Apapa Port, will support the refinery’s fuel delivery program set to launch on August 15. The initiative targets lower logistics costs, improved supply efficiency, and reduced carbon emissions.
Vice-President of Oil and Gas at Dangote Industries, Devakumar Edwin, received the first trucks at the refinery’s Ibeju-Lekki site alongside senior executives and customers. “This is a bold move that positions Nigeria at the forefront of cleaner, more efficient fuel logistics,” Edwin said.
Cutting costs, creating jobs, and boosting MSMEs
According to the refinery, the deployment of CNG trucks—first announced in June—could save Nigerians over N1.7 trillion ($1.11 billion) annually in fuel distribution expenses. The company expects over 60 shiploads of these specialized trucks to arrive in the next six weeks.
Group Chief of Branding and Communications Anthony Chiejina called the initiative “groundbreaking,” citing benefits for more than 42 million Micro, Small, and Medium Enterprises (MSMEs) through lower energy costs and improved profitability.
The plan will also revitalize dormant filling stations, create over 15,000 direct jobs, and help curb cross-border smuggling of petroleum products. The company said the shift to CNG-powered logistics will enhance transparency, ease transportation bottlenecks, and strengthen Nigeria’s energy security.
Refinery expansion to 700,000 barrels a day
Dangote Refinery began operations in 2024 with a capacity of 350,000 barrels per day, increasing to 500,000 barrels per day by January 2025. Plans are already in place to reach 700,000 barrels per day, a jump that could lift its value and strengthen its position. The refinery’s rise is reshaping Africa’s fuel market, reducing Nigeria’s dependence on imported fuel and, for the first time in years, making South Africa the continent’s largest fuel importer.
Aliko Dangote’s fortune now stands at $29.3 billion, putting him within reach of becoming the first African to hit the $30 billion mark, according to the Bloomberg Billionaires Index. Earlier this month, the refinery secured a $1.35 billion loan from Afreximbank as part of a $4 billion syndicated deal to refinance the $20 billion project and speed up investment in Nigeria’s energy industry.
