Nigeria’s Dangote Refinery is set to import 4,000 natural gas powered trucks as part of its plan to distribute refined fuel products directly within the local market.
The company said this initiative will improve supply efficiency and reduce logistics costs.
The trucks, valued at N720 billion ($470 million), are expected to be deployed starting August 15.
This move aligns with the refinery’s strategy to supply fuel directly to retail stations, manufacturers, telecom firms, and other large scale consumers.
Dangote Refinery is Africa’s largest, with a capacity of 650,000 barrels per day (BDP).
Direct supply to the local market
In July, Dangote Refinery announced that it is targeting full reliance of Nigerian crude by the end of the year.
Anthony Chiejina, Head of Branding and Communication at Dangote Industries Limited, said the company aims to cut logistics expenses while improving the reliability of fuel delivery to marketers.
“Importing these trucks will allow us to control our distribution network better and ensure that fuel reaches the end users efficiently,” Chiejina said.
He added that this strategy positions the refinery as a direct competitor to local fuel traders who currently dominate fuel distribution.
This shift is significant because it introduces a more integrated supply chain within Nigeria’s fuel market.
By handling distribution internally, Dangote Refinery hopes to streamline operations and reduce dependence on external transport providers.
Gas as a preferred alternative fuel
Nigeria is Africa’s leading oil exporter, but recent policy changes have influenced fuel consumption patterns.
The government ended a widely used subsidy on petrol, which led to sharp increases in pump prices.
As a result, many sectors have started turning to natural gas as a cleaner and more cost effective fuel alternative.
Despite the benefits, adoption of gas powered vehicles remains limited due to infrastructure and awareness challenges.
Dangote’s decision to use natural gas powered trucks for distribution may help encourage wider acceptance of gas fuel in Nigeria.
“This investment not only supports our logistics but also promotes cleaner energy use within the country,” Chiejina noted.
He explained that the trucks’ fuel efficiency and environmental advantages align with Nigeria’s broader energy goals.
Dangote Refinery’s logistics expansion is a key step in its broader market entry.
By controlling fuel distribution from refinery to consumer, the company expects to improve supply stability and challenge existing market dynamics.
