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Dangote Commits N460 Billion to Support Tinubu’s CNG Initiative

Published by admin on October 28th, 2024.

Dangote Commits N460 Billion to Support Tinubu’s CNG Initiative

In a strong endorsement of President Bola Ahmed Tinubu’s Compressed Natural Gas (CNG) Initiative, Dangote Cement Plc has announced a substantial investment of $280 million (over N460 billion) aimed at advancing CNG technology and infrastructure.

This investment not only reinforces Dangote’s position as a leader in the CNG sector but also demonstrates its commitment to addressing climate change and facilitating a shift towards a low-carbon economy.

Arvind Pathak, the Group Managing Director of Dangote Cement, explained that the funds will be used to transition the company’s fleet entirely to CNG trucks. The goal is to operate predominantly with CNG vehicles by mid-2026. As of October, the company has received its first shipment of 1,500 mono-fuel CNG trucks, with plans to acquire an additional 1,600, totaling 3,100 trucks by year-end.

Pathak emphasized, “By mid-2026, our aim is to have a fleet that is largely powered by CNG. We are also investing in expanding our CNG refueling infrastructure to ensure our fleet has reliable access to this fuel.” He reiterated the urgency of meeting deployment timelines, with a focus on beginning operations in the first quarter of 2025.

He noted that Dangote’s investments in CNG infrastructure are playing a vital role in Nigeria’s transition to cleaner energy sources. The company has already established a CNG station at Obajana, which can refuel over 3,000 trucks, and is developing a second station in Ibese to enhance fleet operations.

Aliko Dangote, President and Chief Executive of Dangote Group, stated that these investments align with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, targeting net-zero emissions by 2060.

“We believe in the potential of President Bola Ahmed Tinubu’s leadership in driving energy efficiency in Nigeria. Private sector involvement is crucial to supporting this commendable initiative,” he remarked, highlighting the company’s alignment with the federal government’s Renewed Hope Agenda to promote CNG vehicles for a greener future.