Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

Africa’s richest man, Aliko Dangote yesterday fulfilled a promise to significantly ‘shakedown’ the downstream petroleum sector, with the company announcing that the 650,000 barrels per day Dangote Petroleum Refinery will commence direct distribution of  fuel nationwide from August.

Chairman of the Dangote Group had last week pledged to  President Bola Tinubu and Nigerians that there will be a major overhaul of the downstream sector, following the visit of the Nigerian leader to the $20 billion facility located in Lagos.

“Now that the President has visited and he has given us additional energy, we will inform you, you will hear from us soon, and that will be one of the major shakedowns in the entire country. It is not the reduction of price, it will be the total overhaul of the downstream,” he stated.

In a statement, the company stated that effective August 15, 2025, it would begin the distribution of Premium Motor Spirit (PMS) commonly known as petrol, and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country. The company said the arrangement comes with free logistics to boost the distribution network.

To ensure smooth take-off of the scheme, Dangote Refinery said it had invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG) powered tankers. It said that this phase of the programme would continue over an extended timeframe.  

According to the statement, the refinery is also investing in CNG stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution.

“This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development. It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the wellbeing of all Nigerians.

“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support. Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery.

“In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee. This pioneering effort marks a major milestone in our vision to revolutionise Nigeria’s energy sector,” the company added.
Stressing that it was dedicated to ensuring that no place was left behind, it pointed out that “Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone, wherever they may be.”

The company said the move was expected to revitalise previously inactive petrol stations, thereby driving job creation, stimulating small and medium-sized enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.

It added that the initiative was inline with the Renewed Hope Agenda of President Bola Tinubu, reflecting the company’s shared commitment to economic progress, stability, and inclusive development.

“We sincerely thank the federal government for its continued support, especially through the Naira-for-Crude scheme, which has helped stabilise fuel supply amid global price volatility. It marks a major revolution in the midstream and downstream sectors and stands as a key example of President Bola Tinubu’s bold and reformative economic policies.

“We invite marketers, petrol dealers, manufacturers, telecom companies, and all key stakeholders to embrace this landmark initiative.  The registration process, including Know Your Customer (KYC) verification, will take place from 16 June to 15 August, spanning a total of 60 days”, the Dangote Refinery stated.