The Federal Government of Nigeria has introduced a N2.5 billion credit initiative aimed at promoting the use of Compressed Natural Gas (CNG) as an alternative fuel. The program, known as the Credit Access for Light and Mobility (CALM) scheme, was unveiled by the Presidential Compressed Natural Gas Initiative (PCNGi).
The CALM initiative is designed to provide affordable financing options for Nigerians to convert their vehicles to run on CNG and support the local manufacturing of conversion kits. Speaking at the launch, Michael Oluwagbemi, CEO of PCNGi, emphasized that the program has the potential to drive domestic investment in the CNG sector while reducing energy costs for citizens.
“This initiative will not only make it easier for Nigerians to access credit for CNG conversion but also encourage local production of these kits. By fostering domestic manufacturing capacity, we are creating jobs, promoting self-reliance, and supporting economic growth” – Oluwagbemi
The scheme is being implemented through a partnership between the Ministry of Finance Incorporated (MoFI), Credicorp, and PCNGi. It is part of a broader government effort to transition Nigeria toward cleaner energy solutions and reduce dependency on traditional fuels.
The CALM initiative builds on other government programs aimed at promoting CNG adoption. For instance, the “Transport Fare Drop Programme,” launched in collaboration with the National Union of Transport Workers (NURTW), offers free CNG conversions for public vehicles to lower transportation costs by up to 40%. Additionally, plans are underway to establish a CNG manufacturing park in Kogi State to support local production.
Last year, Credicorp opened applications for the CALM Fund, enabling Nigerians to access financing for both CNG conversions and solar home systems through partner financial institutions. These efforts reflect the government’s commitment to easing financial pressures on citizens while advancing sustainable energy solutions.
Oluwagbemi highlighted that initiatives like CALM are critical for attracting investments into Nigeria’s energy sector. “This program is not just about providing consumer credit; it’s about building a sustainable ecosystem that benefits everyone, from manufacturers to end-users,” he said.
With these measures in place, the government hopes to accelerate the adoption of CNG as a cost-effective and environmentally friendly fuel alternative while boosting local industries and creating jobs.
