$280M Investment in CNG: Dangote Aligns with Tinubu's Energy Transformation Plan

Dangote Commits $280M to Nigeria's CNG Revolution, Backs Tinubu's Vision

“As part of this initiative, he ordered the distribution of 1 million free CNG conversion kits for commercial...”

Dangote Cement Invests $280M in CNG, Eyes 2026 Target: Nigeria's Largest CNG Fleet Operator Supports President Tinubu's Clean Energy Initiative

Dangote Cement is making a significant investment in President Bola Tinubu's compressed natural gas (CNG) initiative, pouring in a whopping $280 million (over N460 billion) into CNG technology and infrastructure. This massive investment is part of the company's long-term plan to transition its entire fleet to CNG, solidifying its leadership in the CNG sector and demonstrating its commitment to mitigating climate change and supporting a low-carbon economy.

The investment will also enable Dangote Cement to acquire 100% CNG trucks, with the goal of operating most of its fleet on CNG by mid-2026. To achieve this, the company is expanding its CNG fuelling infrastructure, ensuring reliable access to CNG for its growing fleet.

Highlights of Dangote's Investment:

• $280 million investment in CNG technology and infrastructure
• 100% CNG trucks to be acquired
• Mid-2026 target for operating most of the fleet on CNG

Expansion of CNG fuelling infrastructure to support fleet operations

This move is not only a significant milestone in Dangote's clean energy transition but also aligns with Nigeria's Nationally Determined Contribution (NDC) under the Paris Agreement, aiming for net-zero emissions by 2060.

“President Tinubu, whose commitment to CNG deployment and clean energy is unmatched in Africa, has 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 this initiative, he ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.”

President Bola Tinubu recently emphasized the critical need for Nigeria to harness its vast natural gas resources to power the transportation sector, stating, “Utilising natural gas to power Nigeria's transportation industry is the next way to go.” This shift in approach is expected to transform public transportation and energy use in the country.

In support of the President's initiative, Dangote Cement has invested over $280 million in compressed natural gas (CNG) technology and infrastructure, solidifying its leadership in the CNG sector. According to Arvind Pathak, Group Managing Director of Dangote Cement Plc, this investment demonstrates the company's commitment to mitigating climate change and transitioning to a low-carbon economy. The goal is to acquire 100% CNG trucks, transitioning its entire fleet to CNG.

Dangote's CNG Investment Highlights:

Long-term Plan: Transition entire fleet to CNG by mid-2026

Initial Investment: Over $280 million in CNG technology and infrastructure

Fleet Expansion: Received 1,500 mono-fuel CNG trucks, with 1,600 more expected by year-end

CNG Infrastructure: Expanding fueling infrastructure to support growing fleet 

This move is aligned with Nigeria's Nationally Determined Contribution (NDC) under the Paris Agreement, aiming for net-zero emissions by 2060. Aliko Dangote, President/Chief Executive of Dangote Group, praised President Tinubu's leadership in driving energy efficiency and enhancing Nigeria's energy independence.

Dangote Cement has achieved a major milestone in its clean energy transition, aiming to operate most of its fleet on Compressed Natural Gas (CNG) by mid-2026. This ambitious goal is already underway, with the company taking delivery of its first 1,500 mono-fuel CNG trucks in October. An additional 1,600 CNG trucks are expected by year-end, bringing the total to 3,100.

Arvind Pathak, Group Managing Director of Dangote Cement Plc, emphasized the company's commitment to this transition, stating: “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 outlined the company's aggressive deployment timeline, starting from Q1 2025, saying: “Plans are underway to pursue this timeline aggressively, beginning from the first quarter of 2025.” This strategic move supports Nigeria's energy transition and reduces carbon emissions.

Dangote's CNG Transition Highlights:

• Mid-2026 Target: Operate most of the fleet on CNG
• Initial Deployment: 1,500 mono-fuel CNG trucks received, 1,600 more expected by year-end
• Total Fleet: 3,100 CNG trucks by end-2024
• CNG Infrastructure Expansion: Ensuring reliable fuel access for growing fleet
• Aggressive Deployment Timeline: Starting Q1 2025

Dangote Cement is making significant strides in transitioning to cleaner energy. Arvind Pathak, Group Managing Director, emphasized the company's commitment, stating, “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance.” This dedication is evident in their investments in compressed natural gas (CNG) infrastructure, which has positively influenced Nigeria's shift to cleaner fuels.

The company's CNG station at Obajana, capable of refueling over 3,000 trucks, exemplifies this commitment. A second station is currently under development in Ibese to further support fleet operations. Pathak highlighted this progress, showcasing Dangote's leadership in the CNG sector.

Aliko Dangote, President/Chief Executive of Dangote Group, noted that their CNG investments align with Nigeria's Nationally Determined Contribution (NDC) under the Paris Agreement, aiming for net-zero emissions by 2060. He expressed optimism about President Bola Ahmed Tinubu's leadership in the nation's drive towards energy efficiency, stating, “In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu... This presupposes private sector intervention to support this noble idea initiated by the President.”

Dangote's early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, enhancing the nation's energy independence and contributing to a more secure energy future. As Dangote emphasized, “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.”

Highlights:

CNG Infrastructure Investments: Over $280 million invested in CNG technology and infrastructure

CNG Station Capacity: Obajana station can refuel over 3,000 trucks; second station under development in Ibese

Net-Zero Emissions Goal: Aligns with Nigeria's NDC under the Paris Agreement by 2060

Leadership in CNG: Dangote becomes largest operator of CNG trucks in Nigeria.

“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,” he said.