Dangote’s $280m Investment to Drive CNG Infrastructure

Dangote Cement Plc said at the weekend that it has made significant investments exceeding $280 million in Compressed Natural Gas (CNG) technology and infrastructure.

According to the firm, the investments that have made it the operator of the largest fleet of CNG trucks is in line with the drive of President Bola Ahmed Tinubu for the use of cheaper and cleaner energy by Nigerians.

In a statement, the firm said President Tinubu, whose commitment to CNG deployment and clean energy is unmatched in Africa, has maintained his administration’s drive to creating a conducive environment for private sector investments and expanding Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth.

The President, as part of this initiative, ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.

Recall that the President had emphasized the urgent need for Nigeria to utilize its vast natural gas resources in the transportation sector, stating that CNG transportation is an economic necessity for Nigeria, signaling a significant shift in the country’s approach to public transportation and energy use.

The Dangote Cement said the over $280m investment not only solidifies its leadership in the CNG sector but also reflects its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

The statement quoted Group Managing Director of Dangote Cement Plc, Arvind Pathak, as saying the investment is aimed at acquiring 100% CNG trucks as part of a long-term plan to transition its entire fleet to CNG.

This move marks a significant milestone in Dangote’s clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026. As at this month (October), the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting additional 1,600 CNG trucks; totaling 3,100 before the end of the year.
Pathak stated: “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 fueling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.

“He said plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter of next year.

“We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance”.

Pathak said that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels. He added that the CNG station at Obajana, capable of refueling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to support fleet operations.

Meanwhile, the President/Chief Executive, Dangote Group, Aliko Dangote said the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for 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 noted that the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasizing that the initiative is a boost to President Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.

According to him, we are now using CNG vehicles, especially with the new policy of the Federal Government, launched under the Renewed Hope Agenda by President Bola Ahmed Tinubu. We are committed to a cleaner and greener future.