Table of Contents
Key Points
- Dangote Cement partners with Tetracore Energy to enhance Nigeria's Auto CNG supply chain, ensuring cleaner energy adoption.
- The agreement aligns with Nigeria’s CNG Initiative, supplying 400,000 SCM of CNG to Dangote Cement's operations.
- Dangote Cement reports 69.1% revenue growth in 2024, cementing its dominance in Nigeria’s industrial and energy sectors.
Dangote Cement Plc, the leading cement manufacturer majority-owned by Africa’s richest man, Aliko Dangote, has announced a strategic partnership with Tetracore Energy to revolutionize Nigeria’s Auto Compressed Natural Gas (CNG) supply chain. This underscores the company’s commitment to cleaner energy adoption while expanding its extensive logistics operations.
The partnership is set to address the surging demand for CNG, driven by Dangote’s vast fleet and an expanding base of Auto CNG users nationwide. By aligning with President Bola Ahmed Tinubu’s Presidential CNG Initiative (Pi-CNG), the venture aims to reduce Nigeria’s dependence on traditional fuels and promote economic growth through gas utilization.
Advancing Nigeria’s energy transition goals
Under this agreement, Tetracore Energy will supply up to 400,000 standard cubic meters (SCM) of CNG to Dangote Cement. This move not only supports Dangote’s logistics needs but also advances the Federal Government’s energy transition agenda focused on cleaner, sustainable fuel alternatives.
Tetracore Energy plans to deploy cutting-edge Mobile Refilling Units and build strategically located mother stations across Nigeria to ensure an uninterrupted CNG supply chain. This innovative approach guarantees accessibility and reliability for Dangote’s fleet and other Auto CNG users, further solidifying Nigeria’s position as a leader in sustainable energy practices.
Commenting on the deal, Dayo Williams, a Program Executive at Tetracore, stated: “This partnership with Dangote Cement highlights Tetracore’s dedication to fostering sustainable energy solutions in Nigeria. Together, we’re driving the adoption of CNG as a cleaner, more efficient fuel alternative while supporting one of Africa’s most extensive logistics networks.”
Dangote Cement: A Regional powerhouse
Valued at over N8.02 trillion ($4.9 billion), Dangote Cement continues to dominate Nigeria’s cement industry, reducing the country’s reliance on imports and enhancing regional trade. The company exports cement to nations including Cameroon, Congo, and Ghana, solidifying its status as a continental industrial leader.
To strengthen its financial position, Dangote Cement’s board recently approved the issuance of a new bond series under its N300 billion ($180.5 million) multi-instrument issuance program. The proceeds are expected to bolster operational efficiency and support expansion initiatives.
Dangote Cement reported year-on-year impressive financial results, with group revenues soaring by 69.1 percent to N2.6 trillion ($1.6 billion) in 2024, compared to N1.5 trillion ($978 million) in 2023. The growth was driven by robust volume increases in Nigeria, improved pricing strategies, and favorable currency translation gains from pan-African operations.
