The Federal Government has rolled out a N2.5 billion credit scheme aimed at facilitating the conversion of vehicles to Compressed Natural Gas (CNG) and boosting local production of conversion kits. This initiative, named Credit Access for Light and Mobility (CALM), seeks to alleviate transportation and energy costs for Nigerians, particularly in response to rising fuel prices.
Unveiled by the Presidential Compressed Natural Gas Initiative (PCNGi), the scheme is a collaborative effort involving the Ministry of Finance, Credicorp, and PCNGi. It is designed to offer affordable credit options, enabling vehicle owners to transition from petrol-powered engines to CNG, a cleaner and more economical alternative.
Speaking at the launch event, PCNGi’s Program Director, Michael Oluwagbemi, highlighted the initiative’s role in stimulating domestic investment and economic expansion. He pointed out that the program is not solely about consumer credit accessibility but also about fostering local production of CNG conversion kits, a move expected to generate employment opportunities and strengthen Nigeria’s self-sufficiency in the energy sector.
“We are also working on another initiative focused on expanding domestic manufacturing capacity within the CNG sector. This will not only provide financial access for Nigerians but also enhance local production, spur job creation, and bring down energy costs for everyone,” Oluwagbemi stated.
The Federal Government’s push for widespread CNG adoption aligns with its broader strategy to promote sustainable energy solutions and ease financial burdens on citizens. By advocating for gas-powered transportation, the administration aims to lessen reliance on costly fuel imports while advancing the use of cleaner energy alternatives.
The CALM Fund is not the government’s first initiative aimed at providing credit support for Nigeria’s energy transition. Last year, the Nigerian Consumer Credit Corporation (CREDICORP) opened applications for the CALM Fund, enabling Nigerians to access financing for both CNG vehicle conversions and solar home systems.
Alongside CALM, the Federal Government has also introduced the “Transport Fare Drop Programme” in Abuja, in collaboration with the National Union of Road Transport Workers (NURTW). Through this initiative, public transport vehicles were converted to CNG at no cost, with the objective of lowering fares by 30-40%.
By combining consumer credit programs with direct interventions in the transportation sector, the administration aspires to make CNG a practical and widely accepted substitute for petrol and diesel, ensuring long-term cost savings for both businesses and individual consumers.
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