Nigeria launches N10 billion credit scheme for CNG vehicle conversions

The Ministry of Finance Incorporated (MOFI) has introduced the Credit Access for Light and Mobility (CALM) Fund, a N10 billion credit initiative to support Nigerians in converting their vehicles to Compressed Natural Gas (CNG). This initiative is a collaboration between MOFI, the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).

Dr. Armstrong Takang, MD/CEO of MOFI, explained that the initiative aims to address the challenges resulting from recent oil subsidy reforms, which have significantly increased transportation costs. He stated, “One of the unintended consequences was the cost of transportation which spiked over the last several months, creating a lot of challenges for many families who were finding it difficult to move around.”

The CALM Fund will provide Nigerians access to loans for CNG conversion kits and energy-saving solutions through Participating Financial Institutions (PFIs). CREDICORP will seed the fund with N2.5 billion, offering loans at interest rates between 15% to 20%, depending on the borrower’s creditworthiness. Mr. Uzoma Nwagba, Managing Director and CEO of CREDICORP, explained, “We are setting aside a fund that will allow Nigerians specifically access credits to convert their vehicles to CNG with one to three years repayment duration.” He added that “people are charged different interest rates depending on their institutions and credit worthiness, financial behaviour, earnings and diligence with paying back previously.”