Dangote Invests $280m in CNG Trucks, Infrastructure

Dangote Cement Plc has now become Nigeria’s leading operator of compressed natural gas (CNG) trucks after investing over $280 million in advanced technology and infrastructure.

The company stated that this substantial investment of over $280 million not only cements its position in the CNG sector but also highlights its commitment to tackling climate change and supporting a shift to a low-carbon economy.

This initiative aligns with President Bola Ahmed Tinubu’s CNG Initiative, aimed at making fuel options more affordable and environmentally friendly for all Nigerians.

Arvind Pathak, Group Managing Director of Dangote Cement Plc, shared that the investment is part of a larger plan to eventually convert the company’s entire fleet to 100% CNG trucks.

This shift represents a major step in Dangote’s journey towards clean energy, with plans to operate the majority of its fleet on CNG by mid-2026. As of October, the company has already received the first batch of 1,500 CNG trucks, with an additional 1,600 expected soon—bringing the total to 3,100 by year’s end.

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 said plans are afoot to aggressively pursue this 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 that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels. He added that 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 administration of President Tinubu has maintained a 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.

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

Aliko Dangote, President/Chief Executive of Dangote Group, said the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) 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.

According to him: “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.”