Federal Government Unveils Financing Scheme for CNG Vehicle Conversion
The Federal Government has officially launched a groundbreaking initiative designed to provide accessible financing options for Nigerians seeking to convert their vehicles to use Compressed Natural Gas (CNG). This strategic programme is spearheaded by the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), in collaboration with the Nigerian Consumer Credit Corporation (CREDICORP) and a commercial bank.
Affordable Conversion Through Flexible Payment Plans
Speaking at the official flag-off and strategic partnership event on CNG vehicle conversion financing in Abuja, Ismaeel Ahmed, the Executive Chairman and Chief Executive Officer of Pi-CNG & EV, highlighted the introduction of flexible financing options. He emphasized that payment plans, including installments spread over six months, are now available to make the conversion process significantly more affordable for the average Nigerian.
Ahmed further revealed that there are currently 100,000 conversion kits prepared for deployment in the initial phase of the programme. The government has outlined ambitious plans to scale up distribution across the nation to meet the escalating demand for cleaner energy alternatives.
Low-Interest Loans to Drive Adoption
In his remarks, Engr. Uzoma Nwagba, the Managing Director and Chief Executive Officer of CREDICORP, disclosed that the Corporation is offering loan facilities at remarkably low interest rates, starting from just nine per cent. This stands in stark contrast to the exorbitant rates typically charged by many commercial banks, which can range between 48 and 120 per cent, thereby making the scheme far more accessible and economical for ordinary citizens.
Nwagba explained that the initiative is specifically tailored to alleviate the financial burden associated with converting vehicles to CNG, particularly for transport operators whose daily income depends on their vehicles. By providing more flexible and lower-cost credit options, the Nigerian government aims to accelerate the adoption of cleaner energy solutions while simultaneously enhancing the economic stability of beneficiaries.
Encouraging Collective Action for Better Access
The CREDICORP MD encouraged transport workers, including drivers and fleet operators, to organize themselves into cooperative groups to optimize their access to these financing opportunities. He noted that such collective structures not only improve eligibility for the loans but also foster accountability and facilitate easier repayment processes.
This approach reinforces CREDICORP's broader mandate of expanding consumer credit to support critical lifestyle and energy transitions among Nigerians. Nwagba underscored the substantial cost savings, stating, "Once you convert your petrol vehicle to CNG, the cost of fueling that car comes down by about 75 per cent. That means if I spend N80,000 per week on my vehicle, I would now be spending N20,000 per week."
Broader Environmental and Economic Benefits
Ahmed also pointed out that adopting CNG will help cushion the effects of the ongoing Middle East crisis on fuel prices. Moreover, he emphasized the wider objective of reducing harmful emissions and advancing sustainable transport solutions in Nigeria, aligning with global environmental goals.
This comprehensive financing scheme represents a significant step towards promoting cleaner energy, enhancing economic resilience, and fostering a greener future for the nation's transportation sector.
