Africa’s largest refinery, operated by Nigerian billionaire Aliko Dangote, is taking a bold leap towards transforming the country’s energy and logistics sectors. In a strategic move to curb soaring fuel transport expenses, the Dangote Refinery has announced a $467 million investment to roll out 4,000 compressed natural gas (CNG)-powered trucks across Nigeria.
The initiative is part of a broader effort to slash Nigeria’s annual fuel distribution costs by up to $1.1 billion. It marks one of the most significant transitions from diesel to CNG-powered logistics in the region’s history. With CNG being a cheaper and cleaner alternative to diesel, the trucks are expected to not only cut emissions but also drive down the pump price of petrol by reducing the dependency on costly third-party distributors.
By bypassing middlemen and delivering refined fuel directly from refinery to stations and industrial customers, Dangote’s new fleet is set to streamline the supply chain and ease persistent distribution bottlenecks that have plagued the sector.
The move comes at a time when over 42 million micro, small, and medium enterprises (MSMEs) across Nigeria are struggling with the ripple effects of high energy and transportation costs. By introducing these CNG trucks, the refinery aims to ease this burden, providing a cost-effective solution that could potentially catalyse growth and sustainability in small businesses nationwide.
Beyond economic impact, the project is also poised to create more than 15,000 jobs in manufacturing, transportation, and logistics. Recruitment has already commenced in key transport hubs, with technical training programmes to support local drivers, technicians, and support staff.
The Dangote Refinery, located in Lagos, began operations in late 2023 and is designed to process 650,000 barrels of crude oil per day. With this new CNG rollout, the refinery is positioning itself as not only a fuel production powerhouse, but also a leader in logistics innovation and green energy integration.
Analysts believe this investment could set a new standard for public-private synergy in solving Nigeria’s long-standing energy distribution challenges.
