Fatima Aliko-Dangote, daughter of Africa’s richest man, has announced an expansion of the Dangote Petroleum Refinery’s free fuel delivery network as the company seeks to reduce distribution costs and support lower pump prices in Nigeria.
Aliko-Dangote, who serves as Group Executive Director for Commercial Operations, Oil and Gas, WAEP and Fertiliser at Dangote Industries, said Kano, Imo, Anambra and Nasarawa had been added to the programme.
The expansion takes the refinery’s delivery network from six initial locations to 10, covering nine states and the Federal Capital Territory.
Lagos, Ogun, Rivers, Kaduna and Delta states, alongside Abuja, were included in the initial phase.
“The value of domestic refining must ultimately be felt beyond the refinery gate,” Aliko-Dangote said in a company statement issued on Sunday.
She said the refinery would absorb the cost of delivering petroleum products to its customers, removing a significant expense from the distribution chain.
“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,” she added.
The announcement formalises an expansion previously advertised by the refinery and places Aliko-Dangote at the centre of the company’s effort to deepen its control of fuel distribution in Africa’s most populous country.
She said the refinery would absorb the cost of delivering petroleum products to its customers, removing a significant expense from the distribution chain.
“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,” she added.
The announcement formalises an expansion previously advertised by the refinery and places Aliko-Dangote at the centre of the company’s effort to deepen its control of fuel distribution in Africa’s most populous country.
Delivery Savings Could Reach Consumers
Moving petroleum products from the refinery near Lagos to distant markets adds haulage, insurance, driver, vehicle maintenance and road-risk costs to the final price.
Under the new arrangement, Dangote Refinery will take responsibility for delivering products closer to participating marketers, reducing the amount retailers must spend on transportation.
Independent Petroleum Marketers Association of Nigeria spokesperson Chinedu Ukadike said the arrangement could also prevent marketers’ funds from remaining tied up while they waited for products to be loaded and transported.
He said some marketers paid for products and waited for days or weeks before receiving their orders.
According to Ukadike, free delivery would improve marketers’ cash flow, reduce transportation risks and give them more room to compete on price.
However, neither the refinery nor IPMAN announced a new pump price. Any reduction will depend on whether marketers pass the savings to consumers.
Retail prices are also influenced by the refinery’s selling price, exchange rates, financing costs and margins charged at filling stations.
Dangote Strengthens Its Distribution Network
The latest expansion is part of Dangote’s effort to control more of the supply chain between its refinery and Nigerian consumers.
Promotional terms advertised earlier in August offered free delivery to buyers purchasing at least 250,000 litres. Eligible customers were also offered a 10-day credit arrangement.
The latest statement did not say whether those terms had changed.
The company began deploying thousands of compressed natural gas-powered trucks in 2025 to deliver petrol and diesel directly to filling stations, manufacturers, telecommunications companies and other large consumers.
Its refinery has an official nameplate capacity of 650,000 barrels per day, although it processed 700,000 barrels per day during a performance test in June 2026.
The facility supplies Nigeria while exporting petrol, diesel and aviation fuel to markets across Africa and beyond.
The expansion to Kano, Imo, Anambra and Nasarawa will test whether reducing delivery expenses translates into cheaper fuel for motorists outside the refinery’s immediate Lagos market.
