Dangote Cement: We’ve invested over $280m in acquiring CNG trucks, infrastructure

Dangote Cement Plc says it has invested over $280 million in compressed natural gas (CNG) trucks, technology and infrastructure. 

According to a statement on Sunday, Arvind Pathak, group managing director (GMD) of Dangote Cement, spoke at a recent event.

Pathak said the investment aims to acquire 100 percent CNG trucks as part of a long-term plan to transition its entire fleet to CNG.

He also said the investment not only solidifies its leadership in the CNG sector but also reflects the company’s dedication to mitigating climate change and supporting a transition to a low-carbon economy.

The GMD added that the  move marks a significant milestone in Dangote’s clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026

Pathak said 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; totalling 3,100 before the end of the year. 

“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG,” Pathak said. 

“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 ongoing 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 said.

Pathak added that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels.

He said 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.

‘NIGERIA MUST UTILISE ITS VAST NATURAL GAS RESOURCES’

Also speaking at the event, President Bola Tinubu stressed on the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector.

Tinubu said CNG transportation is an economic necessity for Nigeria, signalling 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,” the president said. 

On his part, Aliko Dangote, president and chairman of Dangote Group, said the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria.

Dangote also 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.

“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,” the business mogul said.

Dangote also said the initiative is a boost to Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.