The Dangote Petroleum Refinery and Petrochemicals has taken a major step toward transforming Nigeria's fuel distribution network, commencing the receipt of 4,000 compressed natural gas (CNG)-powered trucks.
This monumental initiative, representing a massive N720 billion investment, is set to go live on August 15 and promises to dramatically reduce logistics costs and enhance fuel supply efficiency nationwide.
The first fleet of these specialised fuel tankers recently made their journey from Apapa Port to the refinery's site in Ibeju-Lekki.
The arrival was met with palpable excitement from both refinery personnel and customers, who gathered to witness the tangible progress.
Devakumar Edwin, Vice-President of Oil and Gas at Dangote Industries Ltd, was on hand to formally receive the consignment, marking a pivotal moment in the company's commitment to pioneering innovative solutions.
This ambitious program is more than just a logistical upgrade; it's a strategic move to address long-standing inefficiencies in Nigeria's downstream petroleum sector.
The sheer scale of the investment, estimated at N720 billion, underscores the refinery's dedication to building a robust and sustainable distribution model.
Members of the public who observed the convoy expressed their commendation for Dangote's proactive approach in tackling the chronic logistics challenges that have plagued the sector for years.
In a statement, Mr Anthony Chiejina, Group Chief of Branding and Communication for Dangote Industries Limited, called the initiative a “groundbreaking development in Nigeria’s fuel distribution network.”
He noted that the delivery of these CNG-powered tankers, particularly given the complexities of global supply chains, is a testament to the company's unwavering commitment to operational efficiency.
“We believe this initiative will significantly lower distribution costs and improve fuel availability for our customers nationwide,” Chiejina said.
He added that the refinery expects over sixty shiploads of trucks to arrive over the next six weeks as the fleet scales up.
This new distribution model is expected to create significant efficiency gains across the entire petroleum sector.
By reducing transportation bottlenecks and fostering greater transparency, the initiative is poised to enhance Nigeria's energy security.
The company projects that the program will save Nigerians over N1.7 trillion annually in fuel distribution costs, while the refinery itself will absorb more than N1.07 trillion in logistics expenses each year.
The economic benefits extend far beyond the petroleum sector. The initiative is projected to significantly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering their energy costs and boosting profitability.
The program is also expected to revitalise dormant filling stations and create over 15,000 direct jobs across the logistics value chain, including roles for drivers, station managers, and attendants at new CNG stations.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), praised the move, calling it not only impressive in scale but also “highly strategic.”
"It signals to the market that CNG is no longer a distant prospect but a current, practical solution to high-energy costs, emissions, and supply chain challenges.
"PCNGI regards this as a milestone achievement in our efforts to accelerate gas-powered transport adoption,” Coker stated.
This strategic program is a cornerstone of Dangote's mission to eliminate logistics bottlenecks, promote environmental sustainability, and support Nigeria's economic development.
By lowering fuel distribution costs, the company aims to reduce production expenses, alleviate inflationary pressures, and stimulate overall economic growth.
Additionally, the initiative is expected to curb cross-border smuggling of petroleum products, paving the way for a more efficient and environmentally friendly distribution system.
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