Dangote invests over $280 million in CNG to support Tinubu’s clean energy drive

Dangote has made investments of over $280 million in Compressed Natural Gas (CNG) technology and infrastructure, in what the firm said is a demonstration of its support for President Bola Tinubu’s CNG initiative aimed at providing cheaper, cleaner fuelling alternatives for Nigerians.

Group Managing Director of Dangote Cement Plc, Arvind Pathak, said the investment was aimed at acquiring 100 per cent CNG trucks as part of a long-term plan to transition the company’s entire fleet to CNG.

Pathak said the move marked 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 this October, the company said it had 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.

Tinubu had maintained his administration’s drive to create a conducive environment for private sector investments and expand Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth.

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

At a recent event, the president emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector, stating that CNG transportation is an economic necessity for Nigeria.

That signalled a significant shift in the country’s approach to public transportation and energy use.

“Utilising natural gas to power Nigeria’s transportation industry is the next way to go,” he stated.

Dangote Cement said the over $280 million investment not only solidified its leadership in the CNG sector, but also reflected its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

Pathak stated, “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 stated that plans were afoot to aggressively pursue the 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.

Pathak said the company’s CNG infrastructure investments had positively influenced Nigeria’s transition to cleaner fuels. He added that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplified 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 was also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aimed at net-zero emissions by 2060.

Dangote stated, “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 stated that the company’s early adoption of CNG had made it the largest operator of CNG trucks in Nigeria, emphasising that the initiative is a boost to Tinubu’s quest to enhance the country’s energy independence and contribute to a more secure energy future.

He was quoted as saying, “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.”