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Dangote backs Tinubu CNG drive, Invests over 280 million dollars in trucks, infrastructure

OMOKAYODE MUSE by OMOKAYODE MUSE
October 29, 2024
in Business
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Dangote backs Tinubu CNG drive, Invests over 280 million dollars in trucks, infrastructure
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—— becomes the largest operator of CNG trucks in Nigeria

In a demonstration of its support for President Bola Ahmed Tinubu’s CNG initiate, which aims to provide cheaper and cleaner fueling alternative for all Nigerians, Dangote Cement Plc has made a significant investment exceeding 28 million dollars in Compressed Natural Gas (CNG) technology and infrastructure.

President Tinubu, whose commitment to CNG deployment and clean energy is unmatched in Africa, has maintained his administration’s drive to create a conducive environment for private sector investment and expand Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth. As part of this initiative, he ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food and goods.

At a recent event, the President emphasised the urgent need for Nigeria to utilise its vast natural gas resources in transportation sector. He stated that 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,” he stated.

On its part Dangote Cement said the over $280 million investment not only solidifies its leadership in the CNG Sector but also reflects its dedication to mitigating climate change and supporting a transition to a low carbon economy.

Arvind Pathak, the Group Managing Director of Dangote Cement Plc, said the investment aims is to acquire 100% CNG trucks as part of long term plan to to transition its entire fleet to CNG.

This 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. As at October, the Company has received its first batch of 1,500 mono fuel CNG trucks, while still expecting additional 1,600 CNG trucks, totalling 3,100 before the end of the year.

Pathak stated, “By mid 2026, Dangote Cement aim to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fueling infrastructure, ensuring that our growing fleet has reliable access to CNG as over fuel. He said that plans are afoot to aggressive pursue this timeline of deployment, beginning from first quarter of 2025.

“We are keeping our eyes on the ball to ensure that we do not miss our target date of full compliance”, he added.

Pathak said that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels. He added that the CNG station at Obajana, capable of refueling over 3000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations.

President/Chief Executive Dangote Group, Aliko Dangote said the company’s investments in CNG are inline with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement which aims for next – zero emission by 2060 .

In this pursuit of transition to clean energy, we are optimistic of remarkable accomplishments by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President, Dangote added.

He said the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria; emphasising that the initiative is a boost to President Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.

According to him, “We are now using CNG vehicles, especially with the 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

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