The Ministry of Finance Incorporated (MOFI) says it is partnering with key stakeholders to introduce the Credit Access for Light and Mobility (CALM) Fund, a N10 billion credit initiative to support Nigerians in converting their vehicles to Compressed Natural Gas (CNG).
Managing Director/CEO of MOFI, Dr. Armstrong Takang, who disclosed this said the initiative is designed to address the challenges posed by recent oil subsidy reforms, which have significantly impacted transportation costs.
He said the new initiative is in collaboration with the Nigerian Consumer Credit Corporation (CREDICORP) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
“One of the unintended consequences was the cost of transportation which spiked over the last several months, creating a lot of challenges for many families who were finding it difficult to move around,” Takang said.
He explained that the CALM Fund will enable Nigerians to access loans for CNG conversion kits and energy-saving solutions through Participating Financial Institutions (PFIs).
Managing Director and CEO of CREDICORP, Uzoma Nwagba, said the agency was setting aside a fund that will allow Nigerians specifically access credits to convert their vehicles to CNG with one to three years repayment duration.
He said CREDICORP will seed the fund with N2.5 billion, allowing loans to be issued at interest rates between 15 per cent to 20 per cent, depending on the borrower’s creditworthiness.
“People are charged different interest rates depending on their institutions and credit worthiness, financial behaviour, earnings and diligence with paying back previously,” Nwagba said.
CEO of Pi-CNG, Sir Michael Oluwagbemi, noted that the initiative aims to provide affordable, eco-friendly fuel options, adding that, “The need for Nigerians to be mobile and enjoy affordable, eco-friendly fuel and reliable transportation made President Bola Tinubu introduce the Pi-CNG programme.”
The Pi-CNG will facilitate the conversion of vehicles to CNG through authorized centers, offering discounted packages for consumers using CALM loans.
