The Dangote Group has announced an investment of over $280 million in Compressed Natural Gas (CNG) technology and infrastructure. This move is part of the company’s commitment to supporting President Bola Ahmed Tinubu’s CNG initiative, which aims to offer more affordable and cleaner fuel options for Nigerians.
In a statement, the company emphasized that this significant investment not only reinforces its leadership in the CNG sector but also underscores its commitment to combating climate change and facilitating a transition to a low-carbon economy.
President Tinubu has designated gas as Nigeria’s transition fuel, reinforcing his administration’s commitment to fostering a favourable environment for private sector investments and expanding the country’s CNG infrastructure. This initiative aims to boost energy efficiency and stimulate economic growth. In support of this initiative, he ordered the distribution of one million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.
Dangote Cement has embraced the initiative by committing to convert its trucks to CNG power. Arvind Pathak, Group Managing Director of Dangote Cement Plc, stated that the $280 million investment is focused on acquiring a fully CNG-powered fleet as part of a long-term strategy to transition all its vehicles to CNG.
According to the Managing Director, “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.
He further stated that “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,” Pathak stated. He said plans are afoot to aggressively pursue this timeline of deployment, beginning from 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”.
Mr Arvind 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 refueling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations.
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.
Aliko Dangote, President and Chief Executive of the Dangote Group, stated that the company’s investments in CNG align with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which targets achieving net-zero emissions by 2060.
He stated that “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.”
He highlighted that the company’s early embrace of CNG has positioned it as the largest operator of CNG trucks in Nigeria. This initiative supports President Tinubu’s efforts to improve the nation’s energy independence and foster a more secure energy future. As indicated by him: “We are now using CNG vehicles, especially with the new policy of the federal government, launched under the Renewed Hope Agenda by His Excellency, President Bola Ahmed Tinubu. We are committed to a cleaner and greener future.”
