The Dangote Group is accelerating its transition to greener and more economical logistics by ordering more than 1,000 compressed natural gas (CNG) trucks from Chinese manufacturer BAIC FOTON. This strategic acquisition, announced on 3 March 2026 at a meeting in Beijing, aims to strengthen the Nigerian conglomerate's distribution capabilities while significantly reducing its fuel and transport costs.
A rapidly expanding fleet to optimise the supply chain
Dangote Group Chairman Aliko Dangote has entered into a major partnership with BAIC FOTON, China's leading commercial vehicle manufacturer. The order is for more than 1,000 CNG-powered tractor units and semi-trailers, specially designed for heavy goods transport. These vehicles will be added to the existing fleet of 4,000 CNG trucks already deployed since August 2025, mainly for the direct distribution of fuels from the Dangote Petroleum Refinery.
This new acquisition is part of a strategy to internalise transport, enabling the group to reduce its dependence on third-party carriers, increase the flexibility of its supply chain and gain greater control over its operating costs. The partnership includes comprehensive support: Kewalram Autos, a local partner, will provide after-sales services and develop assembly capabilities in Nigeria to ensure the long-term reliability and maintenance of the fleet.
Substantial savings thanks to CNG
The choice of compressed natural gas is based on a clear economic advantage. In Nigeria, CNG is currently sold at around 230 naira (approximately £0.17) per litre, compared to more than £0.55 for petrol. This price difference, combined with less volatility in the face of oil market fluctuations, means that significant reductions in logistics costs can be anticipated.
By adopting CNG on a large scale, the Dangote Group is not only optimising its margins, but also contributing to reducing carbon emissions in the heavy transport sector, thereby aligning economic performance with environmental responsibility.
Alignment with national energy policy
This initiative is fully in line with Nigeria's strategy to promote natural gas as an affordable and clean transport fuel. Launched in 2021 under the "Decade of Gas" Initiative and reinforced under the presidency of Bola Tinubu, this policy aims to convert one million vehicles to CNG by 2027.
In 2024, nearly $700 million in investments were mobilised to develop the CNG value chain. Currently, 12 refuelling stations are operational, mainly in Lagos and Abuja, with a national target of 35 stations. Major players such as the Nigerian National Petroleum Company (NNPC), Shell and NIPCO are actively participating in this infrastructure expansion.
A model for African industry
By placing CNG at the heart of its logistics operations, the Dangote Group is demonstrating the economic and environmental viability of a large-scale energy transition in Africa. This order also strengthens BAIC FOTON's presence on the continent, while illustrating how major industrial players can align themselves with national decarbonisation and cost reduction objectives.
However, one major challenge remains: the pace of deployment of refuelling infrastructure will need to keep pace with the rapid growth of CNG fleets in order to avoid operational bottlenecks.
With this new order, Dangote consolidates its position as an African industrial leader while actively participating in the energy transformation of Nigeria and, more broadly, the West African sub-region.