The Dangote Petroleum Refinery has announced the commencement of nationwide distribution of Premium Motor Spirit (PMS), commonly known as petrol, and diesel, effective August 15, 2025. This ambitious initiative, backed by an unprecedented deployment of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers, aims to enhance fuel accessibility, reduce logistics costs, and promote sustainable energy practices across the country. The announcement, made on June 15, 2025, marks a significant milestone in Nigeria’s quest for energy independence and economic growth.
The Dangote Petroleum Refinery, located in the Lekki Free Zone of Ibeju-Lekki, Lagos, is Africa’s largest oil refinery and the world’s biggest single-train facility, with a capacity to process 650,000 barrels of crude oil per day. Since commencing production of diesel and aviation fuel in January 2024, and gasoline in September 2024, the refinery has been a beacon of hope for addressing Nigeria’s long-standing reliance on imported petroleum products. The new nationwide distribution program is designed to overhaul the country’s fuel supply chain, ensuring equitable access to affordable fuel for all Nigerians, regardless of location.
According to a statement released by the refinery, the initiative targets a broad range of stakeholders, including fuel marketers, petrol station operators, manufacturers, telecommunications firms, aviation companies, and other large-scale fuel consumers. By offering free logistics support, the refinery aims to eliminate distribution bottlenecks, reduce operational costs, and enhance energy efficiency. This strategic move is expected to lower production costs for key industries, curb inflation, and foster economic growth, aligning with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
To ensure the seamless rollout of this transformative program, Dangote Refinery has invested heavily in logistics infrastructure, procuring 4,000 brand-new CNG-powered tankers—one of the largest single investments in clean-fuel logistics in Africa. These tankers will form the backbone of a robust distribution network, supported by over 100 additional CNG tankers and a network of Compressed Natural Gas stations, referred to as “daughter booster stations,” strategically positioned across the country. These stations will serve as regional hubs for last-mile delivery, ensuring fuel reaches even the most remote and underserved communities.
The use of CNG-powered tankers shows Dangote’s commitment to sustainability and cleaner fuel alternatives. By leveraging CNG, the refinery aims to reduce the environmental impact of fuel transportation while promoting energy efficiency. This initiative aligns with the federal government’s push for alternative energy sources and is expected to set a new standard for sustainable logistics in Nigeria’s downstream petroleum sector.
In addition to free logistics, Dangote Refinery is introducing a credit facility to support bulk buyers. Customers purchasing a minimum of 500,000 liters of PMS or diesel will be eligible to receive an additional 500,000 liters on credit for a two-week period, subject to a bank guarantee. This innovative financing model is designed to ease the financial burden on fuel marketers and large consumers, enabling them to scale operations and improve fuel availability. The registration process, including Know Your Customer (KYC) verification, will run from June 16 to August 15, 2025, providing stakeholders ample time to prepare.
The nationwide distribution program is expected to have far-reaching economic and social benefits. By revitalizing previously inactive petrol stations, the initiative will drive job creation, stimulate small and medium-sized enterprises (SMEs), and increase government revenue through enhanced economic activity. Improved fuel access in rural and underserved areas will also address long-standing disparities in energy availability, ensuring that no community is left behind.
Read also:
- Dangote Refinery releases hotlines for reporting non-compliance on new Petrol prices
- Dangote refinery slashes petrol price to N875–N905 nationwide
- Zambia seeks to purchase refined products from Dangote Refinery
Industry observers have hailed the program as a “game-changer,” noting its potential to strengthen investor confidence in Nigeria’s downstream petroleum sector. The initiative is also seen as a critical step toward energy reform and economic inclusion, complementing government efforts such as the Naira-for-Crude scheme, which has helped stabilize fuel supply amid global price volatility. Aliko Dangote, founder of the Dangote Group, has emphasized that the program is not merely about price reduction but represents a complete overhaul of the downstream sector, promising a “major shakedown” that will reshape Nigeria’s energy landscape.
The Dangote Petroleum Refinery, a $20 billion project, has long been touted as a turning point for Nigeria’s energy independence. As Africa’s most populous nation and top oil producer, Nigeria has paradoxically relied on imported fuel due to the neglect of its state-owned refineries. With the capacity to meet 100% of Nigeria’s refined product needs and produce surplus for export, the refinery is poised to end this dependency, positioning Nigeria as a regional energy hub.
The refinery’s management has expressed gratitude to the federal government, particularly for the Naira-for-Crude scheme, which has facilitated stable crude supply for the facility. This partnership reflects a shared commitment to economic progress, stability, and inclusive development, with Dangote Refinery positioning itself as a proud Nigerian company with global standards.
As the August 15, 2025, launch date approaches, stakeholders are encouraged to register for the program and complete the KYC process via designated phone lines or by emailing sales.enquiry@dangote.com. The initiative’s phased rollout, supported by cutting-edge logistics and a commitment to sustainability, promises to redefine fuel distribution in Nigeria, making energy more accessible, affordable, and environmentally friendly for all.