FG Unveils N2.5 Billion Credit Scheme To Drive CNG Vehicle Conversion

By Oluwabukola Jimoh ــ Last Update 03 April 2025

The Nigerian federal government has launched a N2.5 billion credit scheme to support vehicle conversion to Compressed Natural Gas (CNG) and enhance local manufacturing of conversion kits.

What Is the CALM Initiative?

The initiative, tagged Credit Access for Light and Mobility (CALM), was introduced by the Presidential Compressed Natural Gas Initiative (PCNGi) to provide accessible financing options for Nigerians looking to switch to cleaner, cheaper fuel alternatives.

The program is a strategic collaboration between the Ministry of Finance Incorporated (MoFI), Credicorp, and PCNGi, aimed at easing the financial burden of rising energy and transportation costs.

Why Is This Important?

With the removal of fuel subsidies, petrol prices have surged, pushing Nigerians to explore alternative fuel sources. CNG is cheaper, cleaner, and more sustainable, offering a long-term solution to Nigeria’s energy and mobility challenges.

According to Michael Oluwagbemi, CEO of PCNGi, the CALM initiative will not only provide consumer credit but also encourage local production of CNG conversion kits, attract investments in domestic manufacturing, and create jobs.

“We have another program down the road that focuses on domestic manufacturing capacity for the CNG sector. I can assure you that this program will not just deliver consumer credit to Nigerians, but will also encourage these products to be made in Nigeria,” Oluwagbemi stated.

Impact on Nigeria’s Energy and Transport Sectors

The CALM scheme is a step toward reducing dependence on petrol and fostering a cleaner, more resilient energy future. Key benefits include:

Lower Fuel Costs – CNG is significantly cheaper than petrol and diesel.

Environmental Sustainability – CNG-powered vehicles emit fewer pollutants.

Growth in Local Industry – The push for domestic manufacturing of CNG kits could drive industrialization and self-sufficiency.

Job Creation – Increased local production will provide employment opportunities in manufacturing, distribution, and maintenance.

Final Thoughts

The launch of the N2.5 billion CALM credit scheme signals a major policy shift towards gas-powered mobility in Nigeria. By expanding access to CNG-powered transportation, the government aims to lower fuel costs, drive industrial growth, and promote environmental sustainability.

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Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.