On Wednesday, the Federal Government unveiled a N10 billion plan that would encourage the conversion of approximately one million more cars to compressed natural gas usage and the use of solar energy by giving income earners consumer credits.
In order to do this, the Presidential Initiative on Compressed Natural Gas, or PICNG, the Nigerian Consumer Credit Corporation, or Credicorp, and the Ministry of Finance Incorporated, or MOFI, have inked an agreement that will provide N2.5 billion in funding for private individuals to convert their vehicles to CNG.
The fund, called the Credit Access for Light and Mobility (CALM) Fund, will make essential services more accessible to Nigerians while promoting sustainability by offering credit at an affordable rate for them to purchase CNG conversion kits and other energy-saving solutions.
Dr. Armstrong Takang, Managing Director of MOFI, stated during the signing ceremony in Abuja that the fund will make it possible for Nigerians to apply for loans through Participating Financial Institutions (PFIs), giving them access to sustainable energy without having to worry about paying large upfront costs.
Takang revealed that in order to grow the initial N10 billion fund, MOFI will work with institutional and private investors to aggregate and grow the consortium fund.
He clarified that the fund is one of the steps being taken to address the unintended consequences of the removal of gasoline subsidies, which have resulted in an increase in transportation costs and high electricity sector tariffs.
“The CNG program is the Federal Government’s solution to that, which is good news, but we
