*Dangote Cement Plc makes significant investments exceeding $280 million in Compressed Natural Gas technology and infrastructure as the largest operator of CNG trucks, in clear support for President Bola Ahmed Tinubu鈥檚 CNG Initiative, designed to provide cheaper and cleaner fuelling alternatives for Nigerian energy consumers

Isola Moses | 绿帽献妻

In a demonstration of its support for President Bola Ahmed Tinubu鈥檚 CNG Initiative, which aims to provide cheaper and cleaner fuelling alternatives for all Nigerians, Dangote Cement Plc has made significant investments exceeding $280 million in Compressed Natural Gas (CNG) technology and infrastructure.

The conglomerate, which disclosed this development in a statement Sunday, October 27, 2024, affirmed that President Tinubu鈥檚 commitment to CNG deployment and clean energy is unmatched in Africa.

Dangote Group stated that the current administration has maintained the momentum to create a conducive environment for private sector investments and expand Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth.

The statement noted: 鈥淎s part of this initiative, he (Tinubu) ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.鈥�

The company equally recalled that the President, at a recent forum, emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector.

He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country鈥檚 approach to public transportation and energy use.

President Tinubu asserted that 鈥渦tilising natural gas to power Nigeria鈥檚 transportation industry is the next way to go.鈥�

Commenting on the promising CNG initiative, Dangote Cement said the over $280m investments had not only solidified its leadership in the CNG sector but also reflected its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

Arvind Pathak, Group Managing Director (GMD) of Dangote Cement Plc, said the investment aimed to acquire 100 percent CNG trucks as part of a long-term plan to transition its entire fleet to CNG.

Pathak stated the move marks a significant milestone in Dangote鈥檚 clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026.

As of October 2024, the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting additional 1,600 CNG trucks; totalling 3,100 before the end of the year, noted the statement.

Pathak also revealed: “By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG.

鈥淭o facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.”

The GMD of Dangote Cement further stated that plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter (Q1) of 2025.

Pathak declared: “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance.鈥�

He equally said that the company鈥檚 CNG infrastructure investments had positively influenced Nigeria鈥檚 transition to cleaner fuels.

The Group Managing Director explained the fact that the CNG station at Obajana is capable of refuelling over 3,000 trucks exemplifies this commitment.

According to him, the second CNG station currently under development, in Ibese, to further support fleet operations.

Speaking on the company鈥檚 investments, Alhaji Aliko Dangote, President/Chief Executive (CE) of Dangote Group, noted the company鈥檚 investments in CNG are also in line with Nigeria鈥檚 Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.

Dangote stated: “In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency.

鈥淭his presupposes private sector intervention to support this noble idea initiated by the President.鈥�

The company鈥檚 early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, said Dangote.

He also stressed that the initiative is a boost to President Tinubu鈥檚 quest towards enhancing the country鈥檚 energy independence while contributing to a more secure energy future.

鈥淲e are now using CNG vehicles, especially with the new policy of the Federal Government, launched under the Renewed Hope Agenda by His Excellency, President Bola Ahmed Tinubu.

鈥淲e are committed to a cleaner and greener future,” Dangote averred.

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