Dangote Invests $280 Million in CNG Conversion to Support Nigeria’s Clean Energy Transition

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Olori Uwem

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Mar 18, 2024
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Dangote Invests $280 Million in CNG Conversion to Support Nigeria’s Clean Energy Transition

In a significant move towards Nigeria’s clean energy goals, Dangote Group has announced an investment exceeding $280 million in Compressed Natural Gas (CNG) technology and infrastructure. This initiative aligns with President Bola Tinubu’s strategy to promote CNG as a transition fuel to drive energy efficiency and economic growth. The investment underscores Dangote’s commitment to mitigating climate change and advancing Nigeria’s low-carbon economy.

The $280 million will primarily fund the acquisition of CNG-powered trucks, as Dangote Cement aims to transition its fleet entirely to CNG by 2026. This investment has led to the delivery of 1,500 CNG mono-fuel trucks, with an additional 1,600 expected by the end of the year. Supporting this shift, Dangote is also expanding CNG refueling stations, including an operational site in Obajana capable of servicing over 3,000 trucks and a second station under construction in Ibese.

Group Managing Director of Dangote Cement, Arvind Pathak, emphasized that the company’s CNG adoption places it as Nigeria’s leading operator of CNG trucks. This early adoption aligns with Nigeria’s Nationally Determined Contributions under the Paris Agreement, aiming for net-zero emissions by 2060.

Aliko Dangote, President and CEO of Dangote Group, expressed optimism about the impact of President Tinubu’s energy policy, noting that the company’s proactive role complements the government’s Renewed Hope Agenda.