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Dangote Puts $280 Million into Making the Switch to CNG and Other Projects

The Dangote Group has announced that it has invested more than $280 million in Compressed Natural Gas (CNG) technology and infrastructure to support the government’s CNG initiative led by President Bola Tinubu.

In a statement on Sunday, the company explained that this investment not only strengthens its position in the CNG market but also shows its commitment to fighting climate change and moving towards a cleaner economy.

President Tinubu has chosen gas as a key fuel for Nigeria’s energy transition and is encouraging private investments to expand the country’s CNG infrastructure, which will help improve energy efficiency and boost economic growth. As part of his plan, he has ordered the distribution of one million free kits to convert vehicles to CNG, particularly those used for transporting people and goods.

To align with this initiative, Dangote Cement is working to convert its trucks to run on CNG. The company’s Managing Director, Arvind Pathak, mentioned that they plan to fully convert their entire fleet to CNG by mid-2026, and their recent $280 million investment will help them purchase only CNG-powered trucks. They have recently received their first batch of 1,500 CNG trucks and expect to add 1,600 more, reaching a total of 3,100 trucks by the end of the year.

Pathak noted that to make this shift to CNG, they are also investing in building more CNG fueling stations to ensure their trucks have constant access to fuel. He stated that they are on track to meet their timeline and will push forward aggressively starting in early 2025.

Read Also: The NLC Criticizes the IMF for Denying the Removal of Fuel Subsidies

Additionally, he highlighted that Dangote’s investment in CNG is playing a key role in Nigeria’s move towards cleaner fuel options. They have established a CNG station in Obajana that can refuel over 3,000 trucks, and a second station is under construction in Ibese to support their operations further.

Aliko Dangote, the President and CEO of the Dangote Group, remarked that their investments in CNG align with Nigeria’s goal under the Paris Agreement to achieve net-zero emissions by 2060. He expressed optimism about President Tinubu’s leadership in promoting energy efficiency and emphasized the importance of private sector involvement in this initiative.

Dangote noted that his company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, which supports the President’s efforts to improve the country’s energy independence and security. He concluded by affirming their commitment to a cleaner and greener future through the use of CNG vehicles as part of the government’s new energy policies.

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