The Dangote Group has announced an investment exceeding $280 million in Compressed Natural Gas technology and infrastructure.
This move underscores the company’s commitment to supporting President Bola Tinubu’s CNG initiative and its leadership in the sector.
The investment aims to mitigate climate change and facilitate Nigeria’s transition to a low-carbon economy, aligning with Tinubu’s strategy to promote gas as the nation’s transition fuel, according to The Punch.
The administration is focused on fostering private sector investment and expanding CNG infrastructure to enhance energy efficiency and stimulate economic growth.
As part of the CNG initiative, President Tinubu ordered the distribution of one million free CNG conversion kits for commercial vehicles used in transporting people, food, and goods.
On its part, Dangote Cement said it is actively participating in the initiative by converting its trucks to CNG powered.
Group Managing Director of Dangote Cement Plc, Arvind Pathak, said the $280 million investment is aimed at transitioning the entire fleet to 100% CNG-powered trucks as part of a long-term sustainability strategy.
“This move marks a significant milestone in Dangote’s clean energy transition, to operate most of its fleet on CNG by mid-2026. As of October, the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting an additional 1,600 CNG trucks; totalling 3,100 before the end of the year.
“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel,” Pathak stated.
He noted that plans are underway to aggressively pursue this timeline for deployment, starting in the first quarter of 2025.
“We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance,” he added.
Pathak added that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels.
According to him, the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations.
The President/Chief Executive of the Dangote Group, Aliko Dangote said that the company’s investments in CNG align with Nigeria’s Nationally Determined Contributions under the Paris Agreement, which targets net-zero emissions by 2060.
“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” Dangote added.
He highlighted that the company’s early adoption of CNG has positioned it as the largest operator of CNG trucks in Nigeria.
He emphasized that this initiative supports President Tinubu’s efforts to enhance the nation’s energy independence and contribute to a more secure energy future.
