Nigerians are now able to access credit facilities for converting their vehicles to gas-powered engines and diversifying to solar energy through the introduction of a N10 billion Credit Access for Light and Mobility (CALM) Fund. The scheme aims to mitigate the impact of petrol subsidy removal on consumers, who are now grappling with fare hikes. A private vehicle owner needs almost N1 million to convert to CNG, while a commercial bus owner pays less. The Ministry of Finance Incorporated (MOFI), Credit Corporation (CREDICORP), and Presidential Compressed Natural Gas Initiative (PI-CNG) launched the CALM Fund, which has 15 to 20 percent interest rates and is accessible through existing participating financial institutions (PFI).
The CALM Fund will provide financial assistance to individuals and businesses looking to switch to Compressed Natural Gas (CNG) as an alternative fuel source. This initiative aims to promote cleaner energy solutions and reduce the financial burden on consumers affected by the removal of petrol subsidies.
The CALM Fund offers a lifeline to households and businesses seeking practical ways to manage their high transportation and energy costs. Through flexible financing options, Nigerians can obtain immediate credit to convert their vehicles to CNG and adopt solar energy solutions, thereby reducing dependency on expensive fuels and lowering electricity bills. CreditiCorp Managing Director, Mr. Uzoma Nwagba, said N2.5 billion of the N10 billion loan is readily available for access, and it is expected to grow with time.
PI-CNG Chief Executive Michael Oluwagbemi said the program would lead to the conversion of an additional 500,000 vehicles. Only 1.5 million vehicles are involved in commercial transport, conveying 90% of Nigerians. The bulk of vehicles in the country are for private use, and the bulk of vehicles are in private hands. CNG is a cheaper and cleaner fuel, and the CALM Fund will help reduce energy and transportation costs by fast-tracking the adoption of CNG and solar energy as alternative, cost-effective solutions.
The National Union of Road Transport Workers (NURTW), Lagos State chapter, unveiled its 3,000 CNG commercial tricycles worth N10.2 billion to ease transport challenges. The initiative aims to bring succor to the masses by reducing the cost of transportation and easing economic hardship. The Imo State Government has made progress in its bid to focus on CNG and liquefied petroleum gas (LPG) development, with Commissioner for Petroleum and Natural Gas Development, Emeka Mgbudem, stating that a 5 mscf mother station will be operational in Assa within the next 10 months.
This development aligns with the Federal Government’s commitment to providing sustainable and environmentally friendly transportation options for its residents. The implementation of CNG and LPG infrastructure will not only reduce carbon emissions but also create job opportunities in the country.
