Dangote Refinery’s Fuel Distribution Strategy a Major Boost for CNG Rollout — Presidency

#Dangote Refinery’s Fuel Distribution Strategy a Major Boost for CNG Rollout — Presidency

The Presidential Compressed Natural Gas Initiative (PCNGI) has hailed the Dangote Refinery’s plan to deploy 4,000 Compressed Natural Gas (CNG) trucks across Nigeria, describing it as a game-changing move for the country’s gas-powered transport sector.

Speaking to journalists on the sidelines of the West Africa Economic Summit (WAES) in Abuja, PCNGI’s Commercial Coordinator, Mr. Tosin Coker, said the development marks a major milestone in Nigeria’s energy transition efforts.

“This is a landmark development and a bold vote of confidence in Nigeria’s gas-powered transportation future,” Coker said. “Dangote Group’s decision to acquire 4,000 CNG trucks is not only significant in scale, but also deeply strategic. It demonstrates that CNG is no longer a distant dream, but a present-day solution to issues of energy cost, emissions, and supply chain risks.”

Coker noted that the PCNGI is structured to drive nationwide adoption of CNG, catalyze investment, and accelerate the shift to cleaner, more affordable, and sustainable transport fuels. He revealed that the Initiative is actively collaborating with Dangote Group to deepen CNG infrastructure and technology in Nigeria.

“We see the Dangote Group as a cornerstone partner in our efforts to achieve widespread penetration of CNG, particularly in the haulage and industrial logistics sectors,” he said. “Our partnership will focus on providing regulatory support for their vehicle deployment and daughter station rollouts, along with technical collaboration to ensure safety and compatibility across infrastructure.”

The PCNGI has made significant progress in the past year, Coker added, with nearly 300 conversion centres already established across at least 20 states. The number of CNG refueling stations is also growing weekly.

The Initiative, he said, is targeting 1,000 refueling stations and nationwide access by 2027, including coverage in every local government area.

On affordability, Coker disclosed that the government is working with financial institutions and partners, including Credicorp, to provide flexible financing options for vehicle owners — particularly civil servants, lecturers, teachers, and other tax-paying Nigerians — through schemes like the CALM Fund, which allows payments for kits and conversions to be spread over time.

“Many conversion centres are also offering innovative financing solutions with their own partners to ease the cost burden for motorists,” he said.

Highlighting CNG’s global track record, Coker stated that millions of vehicles around the world operate safely on CNG in countries like India, Brazil, Iran, Poland, and Argentina. He stressed that CNG cylinders are engineered to withstand high pressure, with rigorous testing and multiple safety features.

“In the event of a leak, CNG, being lighter than air, disperses rapidly, which reduces the risk of fire — unlike petrol, which pools and ignites easily. CNG also has a higher ignition temperature of nearly 600°C, making it inherently safer,” he added.

He emphasized that PCNGI has instituted strict safety, training, and certification protocols for all conversion centres, refueling stations, and CNG vehicle operators in partnership with regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Standards Organisation of Nigeria (SON).

To further enhance public safety and confidence, Coker announced that the Nigeria Gas Vehicle Monitoring System (NGVMS), a robust inter-agency safety and regulatory platform, would soon be launched.

Dangote Refinery had recently revealed plans to invest in the procurement of 4,000 CNG-powered tankers as part of its national fuel distribution strategy.