Dangote invests $280m in CNG conversion, others

The Dangote Group says it has invested over $280m in Compressed Natural Gas technology and infrastructure, saying it is in demonstration of its support for President Bola Tinubu’s CNG initiative.

In a statement on Sunday, the company said its $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.

Tinubu has adopted gas as Nigeria’s transition fuel, maintaining his administration’s drive to create a conducive environment for private sector investments and expanding Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth.

As part of this initiative, he ordered the distribution of one million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.

On its part, the Dangote Cement said it has keyed into the initiative to ensure its trucks are CNG-powered.

Group Managing Director of Dangote Cement Plc, Arvind Pathak, said the $280m investment is aimed at acquiring 100 per cent 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, 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 afoot to aggressively pursue this timeline of deployment, beginning 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 the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution 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, 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.

“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,” Dangote submitted.