by Willy Okonji-
In a move set to reshape Nigeria’s downstream oil and gas landscape, the Dangote Refinery has announced a new fuel distribution model that eliminates traditional middlemen, opting instead to deliver products directly to high-volume end users nationwide.
Starting August 15, 2025, the 650,000 barrels-per-day refinery will begin direct distribution of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) to manufacturers, telecom operators, airlines, and other large-scale consumers.
“This is a transformative national initiative,” the company stated via its official handle on X (formerly Twitter). “It marks a new era in Nigeria’s energy sector—featuring direct supply, free logistics, and extensive reach.”
To support this initiative, the refinery has procured 4,000 compressed natural gas (CNG)-powered tankers and is rolling out CNG booster stations nationwide, backed by a fleet of over 100 CNG tankers.
Key Features of the Initiative Include:
- Free nationwide delivery for buyers
- Credit facility for bulk purchases starting from 500,000 litres with a 14-day repayment window
- Improved fuel access for underserved regions and inactive petrol stations
- Reduced production costs for critical industries and MSMEs
The refinery emphasized that this initiative aligns with President Bola Tinubu’s Renewed Hope Agenda and acknowledged federal backing through the Naira-for-Crude exchange policy, which has helped stabilize domestic fuel supply in the face of global energy uncertainty.
By disrupting the old supply chain—historically dominated by marketers such as MRS, AP Ardova, and Optima—the Dangote Refinery aims to drive down inflation, spur job creation, revive dormant fuel stations, and restore investor confidence in the downstream sector.
The announcement follows a pledge made by Dangote Group President, Aliko Dangote, just last week, promising sweeping reforms in Nigeria’s petroleum market. This direct distribution model marks the first major step toward that commitment.
