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Yes Africa > Blog > Africa Development > Dangote to boost CNG initiative with ₦460 billion investment
Africa DevelopmentEconomy

Dangote to boost CNG initiative with ₦460 billion investment

Oluwatobi Adebayo
Last updated: 2024/10/28 at 8:19 AM
Oluwatobi Adebayo
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Dangote Cement Plc has committed over $280 million (₦460 billion) toward acquiring CNG-powered trucks and infrastructure, demonstrating its support for President Bola Ahmed Tinubu’s CNG Initiative.

The investment demonstrates its ambition to drive sustainable energy solutions, positioning it as a leader in Nigeria’s transition to a low-carbon economy by converting its entire fleet to CNG-powered vehicles.

Arvind Pathak, Group Managing Director of Dangote Cement, noted that the company has already received 1,500 mono-fuel CNG trucks, with another 1,600 expected by year-end.

This will bring their CNG fleet to a total of 3,100 trucks, making Dangote Cement the largest CNG truck operator in Nigeria. The goal is to have the fleet predominantly powered by CNG, by mid-2026.

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To support this transition, Dangote Cement is expanding its CNG refueling infrastructure, with an operational station in Obajana capable of refueling over 3,000 trucks. A second station is under construction in Ibese. These efforts contribute to Nigeria’s Nationally Determined Contributions (NDC) under the Paris Agreement, aimed at achieving net-zero emissions by 2060.

Aliko Dangote, President of the Dangote Group, emphasized that these efforts not only complement the government’s goals but also contribute to Nigeria’s energy independence. He highlighted that President Tinubu’s proactive approach, particularly under the Renewed Hope Agenda, has created an environment conducive to private-sector involvement in the country’s green transition.

In addition, the federal government is ramping up its CNG conversion goals. It plans to increase CNG vehicle conversions from 30,000 in 2024 to 250,000 by mid-2025, with a further expansion to one million conversions by 2027. As part of this initiative, Tinubu’s administration has ordered one million free CNG conversion kits for commercial vehicles.

Dangote Cement’s leadership in the CNG sector is part of a broader movement by Nigerian businesses to invest in alternative energy solutions. As Nigeria accelerates its CNG adoption, initiatives like this will be essential to improving energy efficiency, reducing greenhouse gas emissions, and supporting economic growth.

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