Nigeria is set to witness a major transformation in fuel distribution as a private sector investor rolls out a ₦720 billion initiative to deploy 4,000 Compressed Natural Gas (CNG) trucks across the country. The ambitious move is projected to save over ₦1.7 trillion annually in transportation costs and directly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) that depend heavily on fuel for daily operations.
Set to commence operations by August 15, the project aims to overhaul Nigeria's fuel distribution system by delivering petrol and diesel directly to filling stations, industrial hubs, and major businesses. This streamlined approach eliminates costly middlemen, reduces inefficiencies, and is expected to bring down pump prices, curb inflation, and improve fuel access, especially in underserved and rural areas.
The investor plans to meet Nigeria's daily demand of 65 million litres of fuel—comprising petrol, diesel, and aviation fuel—while cutting current average transport costs of ₦45 per litre. This could result in more than ₦1 trillion in annual savings, a significant relief for both businesses and consumers.
The initiative will also create over 15,000 direct jobs nationwide through the setup of CNG filling stations and logistics hubs, promoting green energy use and sustainable job creation in the transportation and energy sectors.
The Presidential Compressed Natural Gas Initiative (PCNGI) has welcomed the development, describing it as a milestone in Nigeria's energy transition strategy. According to officials, it reflects the government's push for affordable, clean, and scalable alternatives to traditional fuel, and confirms that CNG is a viable and immediate solution to rising energy and logistics costs.
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Industry groups such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) have also praised the project, especially for offering a lifeline to marketers burdened by years of high transport costs due to non-functional pipeline infrastructure. Experts believe the move is a potential game-changer for Nigeria's downstream sector. By removing layers of distribution inefficiency, it could reset fuel pricing nationwide, stabilize supply chains, and support economic recovery.
Development economist Professor Ken Ife said the initiative will reduce structural cost pressures on businesses, while Bismarck Rewane, a respected economist, noted that bypassing middlemen will lead to uniform pricing and more efficient delivery.
According to energy analyst Ibukun Phillips, rural and low-income communities stand to benefit the most from the new system. "This will bridge the gap in fuel availability and pricing across regions. For SMEs, especially in remote areas, it's a much-needed relief," she noted.
In summary, this bold CNG-powered logistics plan is expected to drive lower fuel distribution costs, enhance energy security, and catalyze inclusive economic growth—a significant win for Nigeria's businesses and consumers alike.
