Aliko Dangote’s refinery to begin nationwide fuel distribution in August

Key Points

• Dangote Refinery begins nationwide fuel distribution August 15, boosting Nigeria’s energy independence and cutting fuel imports. 
• The deployment of 4,000 CNG-powered tankers aims to solve fuel distribution bottlenecks and cut logistics costs.
• Credit scheme for bulk buyers to revive filling stations, curb inflation, and support small business growth.

The Dangote Petroleum Refinery, Africa’s largest refinery owned by the continent’s richest billionaire Aliko Dangote, will begin nationwide distribution of Premium Motor Spirit (PMS) and diesel on August 15, 2025, marking a significant shift in Nigeria’s energy landscape. 

In a move to reshape the country’s downstream sector, it is ready to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers to enhance last-mile delivery across Nigeria. Logistics support, including free delivery, will be extended to marketers, petrol station owners, manufacturers, telecoms firms, aviation operators, and other bulk users.

“This initiative is designed to eliminate distribution bottlenecks, reduce operational costs, and support key economic sectors,” the company said in a statement Sunday. “We are rolling out a comprehensive support structure that includes daughter booster CNG stations and a dedicated fleet of over 100 gas-powered trucks.” 

A credit scheme has also been introduced for bulk buyers purchasing 500,000 litres and above, aimed at reviving idle filling stations, curbing inflation, and stimulating small business growth across Nigeria.

Sector reform and national impact

Dangote Group President Aliko Dangote recently hinted at a looming “shakedown” in the downstream sector—not just through fuel price cuts, but a broader overhaul of logistics and distribution models. 

Speaking after a tour by President Bola Tinubu of the $20 billion Lekki-based refinery, Dangote noted the urgency of revamping supply chains amid fuel distribution inefficiencies. The announcement comes as Lagos tanker drivers threaten a strike over rising haulage fees, citing N12,500 per truck E-call-up charges along the Lekki-Epe corridor.

Impact on fuel imports and Nigeria’s energy independence

Dangote Refinery, Africa’s largest oil refinery, began operations in 2024 in Ibeju-Lekki, Lagos. After scaling to 500,000 barrels per day by January 2025, it is on track to hit full capacity of 650,000 b/d later this year—making it the world’s seventh-largest refinery.

The refinery’s surge has already cut Nigeria’s fuel imports dramatically, dropping to 3.1 million tons in Q1 2025—ending Nigeria’s decade-long status as Africa’s largest fuel importer. Recent moves include increasing U.S. West Texas Intermediate (WTI) crude imports amid domestic supply challenges. 

With a net worth of $27.8 billion, Aliko Dangote aims to scale group revenues to $30 billion by 2026 through expanded fuel, petrochemical, and fertilizer exports. This refinery stands at the heart of Africa’s push for energy self-sufficiency and economic reform under the Tinubu administration.