Dangote reveals final date for rollout of fuel distribution nationwide

• The Dangote Group has acceptable the day to commence the nationwide substance organisation to end-users
• The institution besides confirmed that it is investing billions of naira successful acquiring CNG-powered trucks to conscionable the organisation needs
• A caller connection by the conglomerate says that it plans to prevention implicit N1 trillion annually successful logistics costs

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The Dangote Group has confirmed plans to commence transportation of refined petroleum products to filling stations, concern plants, and different bulk substance consumers nationwide.

The institution has besides announced a large concern successful 4,000 compressed earthy gas-powered trucks, costing N720 billion.

Aliko Dangote's refinery is to disrupt substance organisation nationwide. Credit: Bloomberg/Contributor
Source: Getty Images

Dangote’s plans: What’s successful it for Nigerians?

The determination marks a important displacement successful Nigeria’s substance organisation logistics, aimed astatine improving organisation ratio and slashing proscription costs.

The institution revealed that the caller CNG fleet volition beryllium deployed opening August 15, 2025.

A Punch study stated that the institution said the determination was designed to conscionable Nigeria’s regular depletion request of 65 cardinal litres of refined products, including 45 cardinal litres of petrol, 15 cardinal litres of diesel, and 5 cardinal litres of aviation fuel.

Data released by the Dangote Group said that with an mean logistics outgo of N45 per litre, the mega refinery volition screen N1.07 trillion annually successful escaped organisation expenses.

How volition Dangote execute the feat?

Legit.ng reported that the institution is investing N720 cardinal to get 4,000 CNG-powered trucks and besides found nationwide CNG mother and girl stations, among different infrastructure to boost the initiative.

The conglomerate's determination is portion of a larger program to follow cleaner vigor sources portion circumventing third-party marketers and eliminating the bureaucracy that has plagued substance transportation successful Nigeria.

According to reports, with operations acceptable to statesman successful phases, manufacture watchers are intimately monitoring what volition hap successful the downstream petroleum industry.

Legit.ng previously analysed the company’s engagement successful nationwide organisation and its interaction connected downstream players similar autarkic marketers and end-users.

The mega refinery is presently operating astatine astir 85% of its installed capacity, making it 1 of the world’s largest refining facilities, and the biggest successful Africa.

With the CNG rollout, logistics costs are expected to driblet sharply, thereby causing a driblet successful pump prices.

This operation eliminates the accepted proviso concatenation embedded successful pump prices.

Is Dangote readying a monopoly?

Experts person said that Nigeria’s deregulated downstream assemblage offers Dangote afloat control, from refining to transportation and could alteration important savings for consumers and bulk buyers.

They accidental that the instrumentality to nonstop proviso is expected to boost proviso reliability and amusement the company’s committedness to cleaner, much businesslike logistics that align with Nigeria’s energy modulation goals.

However, the Petroleum Products and Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that Dangote’s program could hitch retired smaller operators.

They pass that the determination could pb to monolithic occupation losses, further marketplace dominance, and a semipermanent erosion of contention successful the industry, an assertion the Dangote Group refuted.

Aliko Dangote yet gives crushed for importing US crude. Credit: Bloomberg/Contributor
Source: Getty Images

Dangote gives crushed for importing US crude

Meanwhile, Legit.ng earlier reported that the Dangote Refinery has attributed its abrupt appetite for US crude to the home proviso shortage.

Aliko Dangote, President of Dangote Industries, disclosed this during a sojourn by the Technical Committee of the One-Stop Shop (OSS) connected the merchantability of crude and refined products successful naira.

Dangote explained that contempt the naira-for-crude strategy importantly easing FX unit and contributing to section terms stability, continued home proviso shortages were forcing the mega refinery to trust connected crude from the US.

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Source: Legit.ng