Dangote and NNPC Lock in Massive Gas Deal to Power Refinery and Slash Diesel Costs with CNG

The “Decade of Gas” just got a massive shot of adrenaline. In a deal that essentially links the heart of Nigeria’s energy sector to its biggest industrial engine, the Dangote Group and the NNPC have signed a series of high-stakes agreements to keep the gas flowing to the Lekki Free Trade Zone.

The signing ceremony, which took place at the NNPC Towers in Abuja over the weekend, wasn’t just about one factory. It covered the “Big Three”: Dangote’s refinery, his fertiliser plant, and his cement empire. By scaling up their existing contracts, the two giants are ensuring that the world’s largest single-train refinery doesn’t just have enough crude to process, but enough gas to stay powered up and running 24/7.

For the average Nigerian, the most interesting part of this deal might be on the road. Dangote Cement is using this guaranteed gas supply to go “all in” on CNG (Compressed Natural Gas). By switching its massive fleet of delivery trucks from dirty, expensive diesel to cleaner Nigerian gas, the company expects to slash logistics costs a move that could eventually take the sting out of high cement prices.

“This is a critical milestone,” said David Bird, CEO of the Dangote Refinery. “We are proactively locking in the energy we need to support our next phase of expansion.”

On the other side of the table, NNPC’s GCEO, Bashir Bayo Ojulari, used the event to unveil the 2026 Gas Master Plan. The government’s goal is ambitious: they want to stop treating gas as a “by-product” of oil and start treating it as the backbone of the economy. With a target of attracting $60 billion in new investments, the NNPC is betting that if they can satisfy a customer as big as Dangote, they can satisfy the world.

As the refinery prepares to flood the market with more petrol and the fertiliser plant looks to dominate global trade, this “gas handshake” ensures that the lights stay on and the machines keep humming. It’s a clear signal that in the new Nigerian economy, gas is no longer just a “potential” resource, it’s the actual fuel for growth.