The Dangote Group has announced a substantial investment exceeding $280 million in Compressed Natural Gas technology and infrastructure, underscoring its commitment to supporting President Bola Tinubu’s CNG initiative.
The PUNCH reported that this investment is not just a financial commitment; it symbolizes Dangote’s leadership in the CNG sector and its dedication to addressing climate change while fostering a transition to a low-carbon economy.
President Tinubu has identified gas as Nigeria’s transition fuel, emphasizing the importance of creating an environment conducive to private sector investment.
His administration is focused on expanding Nigeria’s CNG infrastructure to improve energy efficiency and stimulate economic growth.
In line with this initiative, the government has begun distributing one million free CNG conversion kits aimed at commercial vehicles that transport people, food, and goods across the country.
In alignment with this initiative, Dangote Cement has committed to transitioning its fleet to CNG-powered trucks.
The Group Managing Director of Dangote Cement Plc, Arvind Pathak, articulated that the $280 million investment will facilitate the acquisition of 100% CNG trucks, forming part of a comprehensive long-term strategy to convert its entire fleet to CNG by mid-2026.
“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; totaling 3,100 before the end of the year,” Pathak stated.
He emphasized the urgency of this transformation, with plans to aggressively pursue deployment starting 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 further highlighted the positive impact of the company’s investments in CNG infrastructure on Nigeria’s transition to cleaner fuels.
The CNG station at Obajana, which has the capacity to refuel over 3,000 trucks, serves as a testament to this commitment, with a second station currently being developed in Ibese to enhance fleet operations further.
The President and Chief Executive of the Dangote Group, Aliko Dangote, remarked that the company’s investments in CNG align with Nigeria’s Nationally Determined Contributions 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 also noted that Dangote’s early adoption of CNG has positioned the company as the largest operator of CNG trucks in Nigeria.
This initiative not only advances President Tinubu’s vision of enhancing national energy independence but also contributes to a more secure energy future for the country.
“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 concluded.
Through these strategic initiatives, the Dangote Group is playing a pivotal role in Nigeria’s energy transition, demonstrating how private sector investment can align with governmental policies to drive sustainable development.
