Dangote Refinery Deploys First Batch of 4,000 CNG Trucks in ₦720bn Logistics Upgrade for distribution and improve fuel availability
Dangote Petroleum Refinery & Petrochemicals has received the first shipment of its 4,000 compressed natural gas (CNG) trucks, the initial delivery in a ₦720 billion programme designed to overhaul fuel distribution across Nigeria.
The programme — set to officially commence operations on August 15 — will use CNG-powered tankers to move refined products from the Ibeju-Lekki refinery to distribution points nationwide... Read complete content click link below
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What the arrival means
The first batch of vehicles, imported through Apapa Port and transported to the refinery site, were received by Dangote Industries’ Vice-President of Oil and Gas, Devakumar Edwin, alongside refinery staff and customers.
According to company statements, this move is intended to reduce logistics bottlenecks, lower transport costs, and enhance the reliability of supply to both urban and rural markets.
The Dangote Refinery CNG trucks programme is positioned as a major efficiency play: Dangote projects savings in fuel distribution costs of more than ₦1.7 trillion annually.
That translates into cheaper logistics for fuel retailers and distributors, which could in turn lower prices and operating costs for millions of businesses across the country.
Scale and schedule
Dangote says the initial delivery marks the start of a rolling import schedule. Over the coming six weeks, at least 60 shiploads of additional CNG-powered tankers are expected to arrive.
This rapid scale-up aims to ensure the company can deploy a modern, efficient fleet quickly so distribution improvements are felt broadly and without prolonged disruption.
Economic and sector benefits
Beyond direct cost savings, the programme is expected to benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering energy and transport expenses.
Lower logistics costs can reduce production overheads, ease inflationary pressures, and improve profitability for small businesses that rely on fuel for operations.
Switching to CNG-powered tankers also introduces environmental advantages. CNG-powered tankers and compressed natural gas trucks generally produce lower particulate emissions and greenhouse gases than older diesel fleets, aligning this logistics upgrade with cleaner transport trends and sustainability goals within the energy sector.
Operational and strategic context
Industry observers note that integrating a large CNG fleet into a national distribution model is complex: it requires coordination with regulatory bodies, development of refuelling or conversion support logistics, and training for drivers and maintenance crews.
Dangote officials have stated they are collaborating with regulators and stakeholders to smooth the deployment.
For the Dangote Refinery — billed as the world’s largest single-train refinery — this fleet rollout represents a strategic shift from purely production-focused investment to logistics and distribution modernization. By investing in the supply chain, Dangote aims to lock in downstream efficiencies that complement refinery output capacity.
The CNG truck rollout is both a financial and operational bet on modernizing Nigeria’s petroleum distribution.
If the projected savings and reliability gains materialize, the initiative could reshape how refined products move across the country and set a new standard for sustainable logistics in the region.
Source: Punch Newspapers
