ABUJA – In a bid to cushion the impact of rising fuel prices, the Nigerian government has unveiled a credit scheme offering interest rates as low as 9% to help citizens convert their vehicles to Compressed Natural Gas (CNG).
The initiative, led by the Nigerian Consumer Credit Corporation (CreditCorp), aims to convert 100,000 vehicles to the cheaper fuel alternative in its first major phase.
Breaking the ‘affordability barrier’
While CNG has been touted as the primary alternative to petrol following the removal of Nigeria’s long-standing fuel subsidy, the high upfront cost of conversion kits—often running into hundreds of thousands of naira—has remained a significant hurdle for the average motorist. Speaking in Abuja on Wednesday, CreditCorp Managing Director Uzoma Nwagba announced a new Memorandum of Understanding (MoU) with Moniepoint Microfinance Bank and the National Credit Guarantee Company (NCGC) to bridge this financial gap.” Energy reduction is something that will radically improve your life,” Nwagba told reporters. “We are here to enable financial institutions to provide credit so people can afford things that improve their livelihoods.”
How the scheme works
The program is designed to be accessible, particularly for transport workers in organized associations. The process involves:
Registration: Transport unions must register through the Presidential Initiative on CNG (Pi-CNG).
Eligibility: Once organized, drivers are assigned to a conversion center, making them eligible for the 9% interest loans.
Infrastructure: A network of 100,000 conversion kits is reportedly ready for immediate deployment.
Zero duty on Electric Vehicles
The push for cleaner energy is not limited to gas. Ismail Ahmed, Chairman of Pi-CNG, revealed that President Bola Tinubu has approved a 0% import duty on electric vehicles (EVs) to stimulate the market. To support this, the government is in talks with the Rural Electrification Agency (REA) and the state-owned oil firm, NNPC, to install solar-powered charging stations at existing petrol stations across the country.
A nationwide rollout
The move comes at a critical time for the Nigerian economy, where transportation costs have become a primary driver of inflation. Tobi Amira, representing Moniepoint, noted that internal data identifies transport as the “worst burden” currently facing Nigerian households. To reassure lenders, the National Credit Guarantee Company confirmed it will provide the necessary backstops to ensure the loans are repaid, bolstering confidence in the credit market.”By the end of this year, there will be CNG everywhere in all states of the Federation,” promised Tosin Coker, Head of Commercial for the initiative, signaling a rapid shift in the nation’s energy landscape.
Add Comment