The Ministry of Finance (MOFI) has introduced the Credit Access for Light and Mobility (CALM) Fund, a N10 billion credit initiative, to help Nigerians convert their vehicles to compressed natural gas (CNG) . The initiative is a collaboration between MOFI, Consumer Credit Corporation of Nigeria (CREDICORP) and Presidential Initiative on Compressed Natural Gas (Pi-CNG).
Dr. Armstrong Takan, MD/CEO of MOFI, explained that the initiative aims to address the challenges arising from the recent oil subsidy reforms, which have significantly increased transportation costs. “One of the unintended consequences is that transport costs have risen in recent months, creating many challenges for many families who find it difficult to get around,” he said.
The CALM Fund provides Nigerians with access to financing for CNG conversion kits and energy-saving solutions through participating financial institutions (PFIs). CREDICORP will seed this fund with NOK 2.5 billion and will offer loans at interest rates of 15% to 20% depending on the creditworthiness of the borrower. Managing Director and CEO of CREDICORP, Uzoma Nwagba, said: “Give Nigerians special access to credit to convert their vehicles to CNG with a repayment period of 1 to 3 years. We have secured funds.” He added: “People are charged different interest rates depending on their institution, creditworthiness, financial behavior, income and previous diligence in repayments.”
Pi-CNG facilitates the conversion of vehicles to CNG through certified centers and offers discount packages to consumers who use CALM loans. Chief Executive Officer of Pi-CNG, Sir Michael Oluwagbemi, emphasized the initiative’s goal of providing affordable and environmentally friendly fuel options, stating, President Bola Tinubu said:
Nigerians can now instantly obtain financing to convert their vehicles to CNG through the CALM Fund, reducing their dependence on more expensive fuels. Interested parties can apply for a CALM Fund loan through participating financial institutions at http://credicorp.ng/apply. Additionally, authorized PCNGI conversion centers will actively sell this credit option to their customers.
