In a bold move to transform Nigeria’s energy landscape and ease the burden of high fuel costs, Dangote Petroleum Refinery has unveiled a ₦720 billion Compressed Natural Gas (CNG) initiative aimed at saving Nigerians over ₦1.7 trillion annually and revitalizing over 42 million Micro, Small and Medium Enterprises (MSMEs) across the country.
The initiative, which includes the deployment of 4,000 CNG-powered trucks and a nationwide network of CNG refueling stations, is set to commence operations on August 15, 2025. This strategic investment will eliminate transportation charges for fuel marketers and large-scale consumers, absorbing an estimated ₦1.07 trillion in annual logistics costs.
“With average fuel transport costs hovering around ₦45 per litre, this initiative will significantly reduce pump prices, revive dormant filling stations, and stimulate economic activity for millions of small businesses,” said a spokesperson for Dangote Refinery.
The refinery plans to deliver 65 million litres of refined products daily, including 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel, directly to filling stations, industrial users, and other high-volume consumers.
In addition to economic relief, the project is expected to create over 15,000 direct jobs, including roles for drivers, station managers, and support staff. It also aligns with the Federal Government’s clean energy agenda under the Presidential Compressed Natural Gas Initiative (PCNGI).
Tosin Coker, Commercial Coordinator of PCNGI, hailed the development as “a watershed moment in Nigeria’s journey toward a gas-fueled economy,” adding that it demonstrates the viability of CNG as a practical, scalable solution to the country’s energy and logistics challenges.
Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have praised the initiative as a timely intervention to address long-standing infrastructure gaps and reduce the cost of doing business in the downstream sector.