• Dangote orders over 1,000 CNG trucks from China’s BAIC FOTON
• Fleet expansion supports logistics modernization and lower fuel costs
• Initiative aligns with Nigeria’s push to expand CNG transport use

The Dangote Group is advancing its logistics modernization with the acquisition of more than 1,000 compressed natural gas (CNG) trucks from Chinese manufacturer BAIC FOTON. The announcement, made during a meeting in Beijing on Monday, March 2, reflects the group’s push to strengthen industrial distribution while accelerating the adoption of cheaper and less polluting energy.

The fleet will include road tractors and semi-trailers designed for heavy freight transport. The agreement also covers comprehensive support from Kewalram Autos, which will provide after-sales services and develop local assembly capacity to ensure reliable operations.

BAIC FOTON said the partnership supports its ambition to expand its presence in Africa while promoting the energy transition through high-efficiency vehicles.

The initiative aligns with Dangote’s broader logistics strategy. Since August 2025, the group has distributed its fuels directly using a fleet of 4,000 trucks powered by CNG. This strategy reduces reliance on third-party carriers, lowers logistics costs, and increases supply chain flexibility.

CNG, priced at around 230 naira ($0.17) per liter, offers a clear economic advantage over gasoline, which exceeds $0.55 per liter. The price gap also helps limit the impact of fuel price volatility on operating costs.

Optimizing transport through CNG

Dangote’s move also reflects Nigeria’s policy push to promote natural gas. The Decade of Gas Initiative, launched in 2021 and continued under President Bola Tinubu, aims to position CNG as an affordable and cleaner transport fuel.

In 2024, the country attracted nearly $700 million in investments to develop the CNG value chain. Refueling infrastructure is expanding gradually, with 12 stations currently operating in Lagos and Abuja and a national target of 35 stations.

At the same time, a national program aims to convert one million vehicles to CNG by 2027. The initiative involves both public and private actors, including the Nigerian National Petroleum Company, Shell and NIPCO.

By adopting CNG at scale, Dangote is reshaping its logistics model around lower costs and reduced emissions. The newly ordered trucks will support industrial distribution while demonstrating the viability of large-scale low-carbon transport.

The key challenge remains the pace of infrastructure development, as Nigeria must expand refueling networks quickly enough to match the rapid growth of CNG fleets.

The partnership illustrates how industrial expansion can align with the energy transition. By internalizing transport and investing in competitive, cleaner energy, Dangote is strengthening its position as a leading industrial player while helping shape Nigeria’s emerging CNG market.

Olivier de Souza