Dangote Cement Plc has announced a substantial investment exceeding $280 million in compressed natural gas (CNG) technology and infrastructure, underscoring its commitment to President Bola Tinubu’s CNG Initiative. This initiative aims to provide Nigerians with cheaper and cleaner fueling alternatives, while promoting energy efficiency and economic growth across the nation.
President Tinubu has expressed a strong commitment to the deployment of CNG and clean energy solutions. His administration is actively working to create a conducive environment for private sector investments, expanding Nigeria’s CNG infrastructure. A notable aspect of this initiative is the president’s directive to distribute one million free CNG conversion kits for commercial vehicles that transport people, food, and goods throughout the country.
In a statement regarding the investment, Dangote Cement emphasized that the over $280 million allocation not only solidifies the company’s leadership in the CNG sector but also demonstrates its dedication to combating climate change and facilitating a transition to a low-carbon economy. Arvind Pathak, Group Managing Director of Dangote Cement, remarked, “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.”
Pathak detailed the company’s ambitious plans, revealing that Dangote Cement aims to transition its entire fleet to CNG by acquiring 100 percent CNG trucks. As of October, the company has received its first batch of 1,500 mono-fuel CNG trucks, with an additional 1,600 expected to arrive by the end of the year, bringing the total to 3,100. “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 added.
The company has set an aggressive timeline for deployment, planning to initiate operations in the first quarter of 2025. Pathak stated, “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance.” He highlighted that the investments made in CNG infrastructure have positively impacted Nigeria’s transition to cleaner fuels.
Moreover, Dangote’s CNG station in Obajana, capable of refueling over 3,000 trucks, exemplifies the company’s commitment to this initiative. A second station is currently under development in Ibese to further support fleet operations. Pathak noted that these efforts align with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.
Aliko Dangote, President and Chief Executive of Dangote Group, expressed optimism about the country’s transition to clean energy under President Tinubu’s leadership. “We are committed to a cleaner and greener future,” he stated, emphasizing the importance of private sector intervention in achieving these goals. He also recognized Dangote Cement as the largest operator of CNG trucks in Nigeria, positioning the company as a pivotal player in enhancing the nation’s energy independence and security.
