Nigeria: Dangote backs compressed natural gas (CNG) revolution with $280 million

Dangote Cement commits to a transition to clean energy with a $280 million investment in CNG

In a strategic move towards a sustainable, low-carbon economy, Dangote Cement Plc has announced an investment of more than $280 million (460 billion naira) to develop compressed natural gas (CNG) infrastructure in Nigeria. The project, supported by President Bola Ahmed Tinubu's CNG initiative, aims to provide more sustainable and affordable energy solutions for the country.

Arvind Pathak, Group Chief Executive of Dangote Cement Plc, said the ambitious investment is designed to transform the company's fleet to 100% CNG trucks as part of a long-term strategy. The company plans to convert the majority of its fleet to CNG by mid-2026, marking a key step in reducing its carbon footprint and transitioning to environmentally friendly operating practices.

Last October, Dangote Cement received the first batch of 1,500 trucks running exclusively on CNG, with a further 1,600 trucks expected by the end of the year, bringing the total fleet to 3,100 vehicles. To support this transition, a CNG refuelling station has been established at Obajana, with sufficient capacity to serve more than 3,000 trucks. A second station is being developed at Ibese, reinforcing the company's commitment to green logistics.

Aliko Dangote, the Group's Chief Executive Officer, emphasised that this investment is in line with Nigeria's Nationally Determined Contribution (NDC) targets under the Paris Agreement, aiming for zero net emissions by 2060. By adopting CNG, Dangote Cement is not only supporting Nigeria's climate efforts, but also reducing its dependence on fossil fuels, while providing a more economical and sustainable alternative.

This transition to CNG represents a significant step forward for the Nigerian industry, highlighting Dangote Cement's role as a major player in environmental responsibility and sustainability in Nigeria. With these efforts, Dangote Cement is putting Nigeria on the path to a greener economy, while inspiring other local and regional companies to follow this direction towards environmentally friendly growth.