• Saturday, June 15, 2024
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Dangote Cement targets CNG truck deployment by 2025

Dangote Cement targets CNG truck deployment by 2025

Dangote Cement Plc has revealed its commitment to transitioning thousands of its delivery trucks to run on Compressed Natural Gas (CNG) by 2025 as a significant step toward cleaner energy adoption in Nigeria.

Aliko Dangote, chairman of the company, said the decision was to add to the Federal Government’s quest towards reducing dependence on fossil fuel, thereby enhancing the nation’s energy independence and contributing to a more secure energy future.

Read also: Dangote Cement, Seplat, Lafarge beat other premium stocks

The chairman made this known at the company’s 15th Annual General Meeting (AGM) of Dangote Cement Plc, held in Lagos

According to him: “We are now going to start using CNG vehicles, especially with the new policy of the Federal Government, launched by the Renewed Hope Agenda by His Excellency, President Bola Tinubu.

“By the end of next year, all our trucks that are operating in the company will be running on CNG, and that is a whole lot of money that we are going to invest. But we are equal to the task, and we will continue to push and make sure that we continue to make our shareholders happy.”

Last month, President Tinubu directed the mandatory procurement of compressed-natural-gas-powered vehicles by all government ministries, departments, and agencies in line with his commitment to ensuring energy security, driving utility, and cutting high fuel costs.

Alluding to what Dangote said on the use of CNG as an alternative fuel for its cement trucks, Arvind Pathak, the Group Managing Director of Dangote Cement Plc, noted that in response to the heightened inflationary environment, “we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins.

“These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full CNG trucks.”

Read also: Gunmen abduct scores of Dangote Cement workers in Edo ambush

In his comment, Faruk Umar, the President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), said the shareholders could not but thank the board and management of Dangote Cement for a job well done.

He commended Dangote for his patriotism and dedication to the cause of Nigeria and her people with his decision to reduce the prices of his petroleum products. He expressed hope that the price of Premium Motor Spirit popularly called petrol would come down once the Dangote Refinery rolls out the product soon.