Dangote Refinery’s direct fuel distribution plan will reduce Nigeria’s inflation, according to Bismarck Rewane, CEO of Financial Derivatives Company. The initiative, set to begin on August 15, 2025, is expected to transform the downstream oil sector by lowering logistics costs and bringing fuel directly to consumers.
In the July 2025 edition of the Lagos Business School Executive Breakfast Series, Rewane explained that Dangote Refinery’s decision to invest over ₦1.7 trillion annually in fuel logistics is a game-changing development. The distribution strategy includes 4,000 compressed natural gas (CNG) trucks to supply petrol and diesel directly to end-users.
Rewane noted that this approach will reduce pump prices, support small businesses, and ultimately curb inflation. As of May 2025, Nigeria’s headline inflation stood at 22.97 percent.
“With 4,000 CNG-powered trucks delivering fuel to the doorsteps of Nigerians, pump prices will drop, inflation will ease, and businesses will gain better access to energy,” Rewane stated in the FDC report.
Despite the positive economic outlook, the move has sparked concerns among fuel marketers and retailers. They argue that the direct-to-consumer model could lead to widespread job losses in the traditional fuel distribution chain.
Fuel prices in Nigeria have decreased over the past week. This trend is due to a global drop in crude oil prices and Dangote Refinery’s decision to reduce the ex-depot price of petrol from ₦880 to ₦840 per litre.
In response, the Nigerian National Petroleum Company Limited (NNPC) also reduced prices at its Abuja stations, adjusting pump prices from ₦945 to ₦910 per litre.
Dangote Refinery’s fuel distribution plan may signal a turning point for Nigeria’s energy sector. By lowering logistics costs, supporting small businesses, and reducing fuel prices, the strategy could help stabilize inflation and improve access to energy across the country.
