FG unveils credit scheme for CNG conversions, solar adoption

The Nigerian Consumer Credit Corporation (CREDICORP), along with the Ministry of Finance Incorporated and the Presidential Initiative on Compressed Natural Gas Ltd, unveiled the Credit Access for Light and Mobility Fund in Abuja on Wednesday. This launch coincided with the signing of a Memorandum of Understanding among the three entities.

The fund aims to provide affordable financing for individuals looking to convert their vehicles to run on Compressed Natural Gas (CNG) and to adopt solar energy solutions. Michael Oluwagbemi, the Programme Coordinator and CEO of PI-CNG, highlighted the initiative’s inclusive nature, stating, “This program opens doors for anyone wishing to convert their vehicles. Whether you’re a civil servant, a salaried employee in the private sector, or an entrepreneur with verifiable income, you are encouraged to participate.”

Oluwagbemi expressed hope to facilitate the conversion of between 500,000 and one million vehicles, emphasizing how individual vehicle owners can significantly reduce their transportation expenses. He described the CALM Fund as a vital resource for families and businesses striving to cope with rising energy and transportation costs.

With flexible financing options, he noted that Nigerians could access immediate credit for CNG conversions, reducing reliance on expensive fuels and lowering electricity bills. Amid increasing petrol prices and living costs, he stressed that the CALM Fund addresses these challenges by promoting a switch to CNG, which is both economical and eco-friendly.

Through partnerships with Participating Financial Institutions, the fund aims to provide sustainable energy access without requiring upfront payments. Oluwagbemi underscored the collaborative effort of the involved organizations to support Nigerians.

Uzoma Nwagba, Managing Director of CREDICORP, emphasized the importance of this initiative, stating, “Today marks a significant step forward, as the rising costs of petrol and energy affect everyone.” He added, “With CreditCorp, our aim is to assist individuals in enhancing their lives by providing access to goods and services they might otherwise have to save for.”

The initial N10 billion fund will be spearheaded by MOFI, which will work with private and institutional investors. CREDICORP is set to manage the fund, contributing N2.5 billion to ensure affordable financing through PFIs. Additionally, PI-CNG Ltd will facilitate vehicle conversions at certified centers, offering consumer discounts on CALM loans.

Dr. Armstrong Takang, MD/CEO of MOFI, discussed the necessity for sustainable solutions in light of recent economic changes, acknowledging the unintended effects of subsidy removals. He insisted that the Federal Government remains committed to ensuring access to credit for essential services like CNG conversions and solar energy.

Nwagba encouraged Nigerians interested in the initiative to apply for CALM Fund loans via participating financial institutions at credicorp.ng/apply. Accredited P-CNGI conversion centers will also actively promote this credit option to their customers.