The Dangote Petroleum Refinery & Petrochemicals has officially begun receiving a fleet of 4,000 compressed natural gas-powered trucks, a major step toward reshaping Nigeria’s fuel distribution network.

The trucks, imported through Apapa Port, will support the refinery’s nationwide fuel logistics programme set to launch on August 15, 2025.

First trucks arrive in Ibeju-Lekki

Valued at an estimated ₦720 billion, the fleet represents one of the largest capital investments in Nigeria’s downstream sector in recent years.

Dangote Industries says the goal is clear — cut logistics costs, improve supply efficiency, and ultimately make petrol more affordable for Nigerians.

According to a Punch report, the first batch of CNG trucks has already arrived at the refinery site in Ibeju-Lekki, Lagos.

The delivery was received by Devakumar Edwin, Vice-President of Oil and Gas at Dangote Industries, in the presence of refinery staff, partners, and customers.

“This is more than just the arrival of trucks; it is the arrival of a new era in Nigeria’s energy sector,” Edwin said.

“These trucks will help make petrol distribution faster, cleaner, and cheaper.”

Lower costs, bigger savings

According to Dangote’s Group Chief of Branding and Communication, Anthony Chiejina, the CNG-powered trucks will drastically cut transportation costs.

“We are projecting savings of over ₦1.7 trillion annually in fuel distribution costs,” Chiejina revealed.

These savings are expected to translate into lower pump prices, especially as transportation is a major factor driving fuel costs nationwide.

In addition, the initiative will help curb smuggling, revitalise dormant filling stations, and improve fuel availability in remote areas.

Boost for small businesses and job creation

Dangote says over 42 million Micro, Small, and Medium Enterprises (MSMEs) will benefit from cheaper fuel, reducing their operating costs and boosting profitability.

The company estimates that the project will create more than 15,000 direct jobs across the logistics chain — from truck drivers to station managers.

The new trucks will also support environmental sustainability by reducing emissions compared to diesel-powered alternatives, in line with global green energy trends.

Countdown to August 15

With at least 60 shiploads of trucks expected over the next six weeks, Nigerians are now counting down to August 15 — the date when Dangote’s nationwide CNG-fuelled distribution network is scheduled to go live.

Industry experts believe this initiative could be a turning point in Nigeria’s downstream petroleum sector, easing inflationary pressures and stabilising fuel prices in the months ahead.

Analysts disagree on the plan

Meanwhile, analysts are divided over the mega refinery’s massive distribution plans.

While some see it as a game-changer in logistics, which might lead to a price cut, others say it reeks of plans to control the market.

Adeola Yusuf, energy policy analyst and Team Lead at Platforms Africa, hailed the move as revolutionary, saying it will drastically impact fuel prices nationwide.

“If properly done, the plan is both brave and disruptive. It will lead to reduced costs because it targets end-users and offers incentives such as credit facilities.

To underscore its importance, last week, tanker drivers almost disrupted telecom services nationwide due to a labour dispute. They refused to supply diesel to towers and telecom base stations.

"Imagine if Dangote had begun the distribution programme, these people would be completely sidelined,” Yusuf said.

However, Osas Igho said the plan is a double-edged sword with several implications.

“The move might lead to mass loss of jobs, as most logistics firms, which will be affected, will downsize. Also, I am not sure how this will benefit consumers other than that it will boost Dangote’s reach,” he said.