Dangote Petroleum Refinery has invested over N720 billion to implement a landmark initiative deploying 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide distribution of petroleum products.
This bold move is expected to save Nigerians over N1.7 trillion annually and benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.
The initiative will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs and eliminate transportation costs for fuel marketers and large-scale consumers.
This is expected to help reduce pump prices and inflation. The refinery aims to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products, including 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
The initiative is expected to have a significant impact on the economy, including:
Job Creation – Over 15,000 direct jobs are projected to be created across the logistics chain.
Economic Growth – Lower fuel distribution costs will help reduce production costs, ease inflationary pressures, and stimulate economic growth.
Environmental Sustainability – The use of CNG-powered trucks will promote environmental sustainability and reduce emissions.
The Presidency has described the initiative as a pivotal moment in the Federal Government’s push to mainstream gas-powered transportation.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and other industry experts have also praised the move, calling it a timely resolution to longstanding challenges in the downstream sector.
Comment here