… to curb cross-border smuggling, reduce logistics costs, boost supply efficiency

Oredola Adeola

Dangote Petroleum Refinery & Petrochemicals has announced that, with the arrival of its first consignment from a 4,000-unit fleet of compressed natural gas (CNG)-powered trucks, it will launch a nationwide fuel distribution logistics programme on August 15 to curb cross-border smuggling, lower logistics costs, and improve supply efficiency across Nigeria.

Mr Anthony Chiejina, Group Chief of Branding and Communication, Dangote Industries Limited, confirmed this rollout in a statement obtained by Advisors Reports on Sunday.

According to him, the first consignment of trucks recently departed Apapa Port and was formally received at the refinery site in Ibeju-Lekki by Devakumar Edwin, Vice-President of Oil and Gas at Dangote Industries Ltd, and in the next six weeks, the refinery expects at least sixty shiploads of these trucks to arrive in the country.

He said, “The fleet, acquired at a cost of N720 billion, is aimed at supporting Nigeria’s efforts to reduce logistics costs, and improve supply efficiency for customers.

“The company said the investment will also help maintain operational efficiency while enabling the scaling up of its distribution capacity.

Given the complexities inherent in global supply chains, the delivery of these specialised CNG-powered tankers is indeed commendable. This approach ensures that we maintain operational efficiency while scaling up the fleet.

“Our unwavering commitment to this programme is reflected in our ongoing collaboration with key regulatory bodies and stakeholders to facilitate seamless deployment.

“We believe this initiative will significantly lower distribution costs and improve fuel availability for our customers nationwide.

The Dangote Group’s Chief of Branding and Communication further explained that the initiative is projected to save Nigerians over N1.7 trillion annually in fuel distribution costs.

He noted that the privately owned refinery will absorb more than N1.07 trillion every year in fuel logistics expenses.

“The scheme is expected to significantly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering energy costs and improving profitability.

Chiejina further said, “This strategic programme is part of Dangote’s commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development.

“Lower fuel distribution costs will reduce production expenses, alleviate inflationary pressures, and stimulate overall economic growth.

“The initiative is also expected to revitalise dormant filling stations, creating over 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at the new CNG stations,” he said.

Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), in her comment stated that Dangote Group’s acquisition of 4,000 CNG trucks signals to the market that CNG is no longer a distant prospect but a current, practical solution to high energy costs, emissions, and supply chain challenges.

“PCNGI regards this as a milestone achievement in our efforts to accelerate gas-powered transport adoption,” Coker said.