FG launches N2.5b credit scheme to boost CNG vehicle conversion, local manufacturing

The Federal Government has introduced a N2.5 billion credit scheme designed to accelerate the conversion of vehicles to Compressed Natural Gas (CNG) and support the local production of conversion kits.

The initiative, named Credit Access for Light and Mobility (CALM), was unveiled by the Presidential Compressed Natural Gas Initiative (PCNGi) to provide financial relief and enhance energy efficiency in Nigeria’s transportation sector.

According to PCNGi, the CALM program aims to make CNG adoption more accessible for vehicle owners, transport operators, and businesses, ultimately reducing dependence on petrol and lowering emissions.

By supporting local manufacturers of conversion kits, the scheme also seeks to stimulate economic growth and create job opportunities within the sector.

“The Federal Government has introduced a N2.5 billion Credit Access for Light and Mobility (CALM) initiative to alleviate financial pressures on Nigerians amid rising energy and transportation costs,” the statement read.

The scheme is being implemented through a partnership between the Ministry of Finance, Credicorp, and PCNGi, with the goal of expanding access to CNG-powered transportation solutions.

“Spearheaded by the Ministry of Finance Incorporated (MoFI), Credicorp, and the Presidential Compressed Natural Gas Initiative (PCNGi), the program aims to provide affordable credit options for Nigerians to adopt Compressed Natural Gas (CNG) solutions.”

During the launch event, PCNGi’s Program Director and CEO, Michael Oluwagbemi, highlighted the initiative’s potential to attract investments into the domestic CNG sector.

“This kind of initiative has the potential to attract the necessary investments for domestic production of CNG conversion kits, fostering self-reliance and economic growth.

“We have another program which down the road also being coordinated on domestic manufacturing capacity for the CNG sector. I can assure you that this program will not just deliver consumer credit to Nigerians, but we also encourage these products to be made in Nigeria and will drive job creation as well as lower energy for all Nigerians.”

The initiative aligns with the government’s broader efforts to enhance gas mobility while demonstrating a commitment to sustainable energy and economic relief for citizens.