Dangote Refinery’s Fuel Distribution Plan A Boost To CNG Initiative, Says Presidency

Dangote Refinery’s Fuel Distribution Plan A Boost To CNG Initiative, Says Presidency

The Presidential Compressed Natural Gas Initiative (PCNGI) has welcomed the Dangote Refinery’s fuel distribution plan that will see it deploying 4,000 Compressed Natural Gas (CNG) trucks across Nigeria.

Speaking to newsmen on the sideline of the just concluded West Africa Economic Summit (WAES) in Abuja, Commercial Coordinator, Tosin Coker, said: “This is a landmark development, and a bold vote of confidence in Nigeria’s gas-powered transportation future.

“Dangote Group’s decision to acquire 4,000 CNG trucks is not just significant in scale, it is also deeply strategic. It sends a powerful signal to the market that CNG is no longer a future aspiration but a present-day solution to energy cost, emissions, and supply chain risks. PCNGI welcomes this development and views it as a defining milestone in our effort to mainstream gas-powered transport in Nigeria.”

Mr. Coker said the Presidential Compressed Natural Gas Initiative is structured to drive adoption, catalyse investment, drive innovation, and accelerate Nigeria’s transition to cleaner, cheaper, and more sustainable transport fuels.

According to him, PCNGI and the Dangote Group are partnering to deepen CNG technology in Nigeria.

He added: “We see the Dangote Group as a cornerstone partner in achieving nationwide penetration of CNG technology, particularly in the haulage and industrial logistics space. Our partnership will focus on regulatory support for their CNG vehicle and daughter station rollout where required, as well as technical alignment to ensure all infrastructure meets safety, design, and interoperability standards.

He said the Initiative has made significant inroads over the past year, with almost 300 conversion centres nationally, many of which are handling private conversions too, adding that in terms of accessibility, there are conversion centres in at least 20 states of the federation and the number of refueling stations is increasing every week.

Mr. Coker said the Presidential Initiative has a target to reach every local government area and certainly 1000 refueling stations by 2027.

In terms of affordability, he said it is working with various banks and financing partners including Credicorp to make the cost of conversion affordable to civil servants, lecturers and teachers and all tax-paying Nigerians through efforts like the CALM Fund, whereby payments for kits and conversions can be spread out over time.

He added that many conversion centres were also offering their own solutions in partnership with their finance partners.

“Globally, millions of vehicles run on CNG, with decades of proven safety records in countries as diverse as India, Iran, Poland, Brazil, and Argentina. CNG cylinders are built to withstand very high pressure, rigorously tested, and equipped with multiple safety features,” he said.

He said in the event of a leak, CNG, being lighter than air, disperses quickly, reducing the risk of fire. In contrast, petrol pools and ignites more easily. Adding that the ignition temperature of CNG at close to 600 deg C is far higher than that of petrol.

“Through PCNGI, we have instituted strict safety, training, and certification protocols for conversion centres, refuelling stations, and vehicle operators in line with international best practices and in collaboration with regulators like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Standards Organisation of Nigeria (SON).

“The upcoming Nigeria Gas Vehicle Monitoring System (NGVMS), which is a comprehensive inter-agency safety and regulatory system will ensure additional protection for all users and the general public,” he said.

Dangote Refinery recently announced it was investing in the procurement of 4,000 Compressed Natural Gas (CNG)-powered tankers.