Dangote Refinery invests in 4,000 gas-powered trucks to distribute fuel directly, cutting logistics costs and competing with Nigerian fuel traders.
Nigeria’s Dangote Refinery has announced the importation of 4,000 natural gas-powered trucks as part of its strategic plan to distribute refined petroleum products directly to the domestic market. According to multiple media reports, this development marks a significant step in the company’s broader logistics and supply chain expansion, aimed at strengthening its competitive position in the Nigerian fuel market.
Earlier in June, Dangote Refinery revealed that it would begin direct fuel supplies to retail fuel stations, large industrial manufacturers, telecommunications companies, and other major fuel consumers starting in August. This initiative is designed to improve supply efficiency across the country but will also place the refinery in direct competition with established local fuel traders who have traditionally dominated the distribution sector.
The trucks, which will operate using natural gas, are part of an investment valued at approximately 720 billion naira (about $469.89 million). According to Dangote Industries Limited, the fleet will be officially deployed on August 15. The use of natural gas-powered vehicles aligns with Nigeria’s growing interest in alternative energy sources, especially in the wake of recent fuel subsidy removals.
Anthony Chiejina, Head of Branding and Communications at Dangote Industries Limited, stated that this move is intended to reduce overall logistics expenses while ensuring that products reach marketers more efficiently. By controlling a larger portion of the supply chain, the refinery aims to minimize delivery delays, stabilize fuel availability, and potentially reduce the costs that consumers face.
The Dangote Refinery, with a massive processing capacity of 650,000 barrels of crude oil per day, is the largest oil refinery in Africa and one of the most significant industrial projects on the continent. This investment in logistics infrastructure reflects the company’s intention to fully capitalize on its production scale and become a dominant force in Nigeria’s downstream oil market.
Nigeria, Africa’s leading crude oil exporter, has increasingly turned to gas as an alternative energy source. This shift has been accelerated by the government’s decision to remove the long-standing but financially burdensome petrol subsidy, which had kept pump prices artificially low for years. The removal of the subsidy, while easing fiscal pressure on the government, has led to sharp increases in fuel prices nationwide.
Despite policy incentives and the cost advantage of gas over petrol, adoption of gas-powered transport and machinery in Nigeria has been relatively slow. Dangote’s investment in a large fleet of gas-powered trucks could encourage broader market adoption, offering a model for integrating cleaner, more affordable fuel alternatives into mainstream logistics operations.
