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Dangote invests over $280m in CNG trucks, infrastructure

By Stanley Onyeka, Lagos  

Dangote Cement Plc said it has made significant investments exceeding $280 million in compressed natural gas (CNG) technology and infrastructure, in support of the Federal Government’s CNG Initiative, which aims to provide cheaper and cleaner fuelling alternatives for all Nigerians.

The company commended President Bola Tinubu’s commitment to CNG deployment and clean energy through private sector investments to enhance energy efficiency and drive economic growth.

As part of this initiative, it noted that the government ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods. 

To this end, Dangote Cement said the over $280million 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 company’s Group Managing Director, Arvind Pathak, said the investment aims to acquire 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 of October, the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting additional 1,600 CNG trucks; totalling 3,100 before the end of the year. 

Mr. Pathak said: “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.”

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”, he added. 

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.

Mr. 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 refuelling 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,” Mr. Dangote added. 

He noted that the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasising 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.

He said: “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.”

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