CREDICORP, the Nigerian Consumer Credit Corporation, officially opens applications for the Credit Access for Light and Mobility (CALM) Fund. This initiative aims to provide consumer credit to assist Nigerians in converting their vehicles to Compressed Natural Gas (CNG) and acquiring solar home systems through partner financial institutions. Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media, encourages citizens to take advantage of this opportunity.
Nigerians interested in obtaining credit for CNG conversions or solar energy systems can apply for support through the CALM Fund, which is a collaboration between the Ministry of Finance Incorporated (MoFI), CREDICORP, and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
Transition to CNG
This initiative follows a recent appeal by the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, urging Nigerians to adopt CNG as a reliable fuel source. He emphasizes that the CNG initiative is here to stay, noting that it is safe, economical, and environmentally friendly. The Minister reveals that the President forms a committee to advance the CNG project and instructs many existing fuel stations to convert to CNG facilities.
“Switching to CNG presents significant cost savings,” Ekpo states. “While a liter of traditional fuel can reach N1,000, CNG costs about N200 per liter, allowing for savings of N800 per transaction.” He highlights the President’s commitment to driving the CNG program throughout Nigeria, emphasizing the country’s rich natural gas resources.
Overcoming Barriers
Despite the advantages of CNG, the initial conversion cost—estimated between N1 million and N1.3 million—remains a barrier for many Nigerians who wish to transition from more expensive fuel sources, especially as traditional fuel prices exceed N1,000 per liter.
The Presidential Compressed Natural Gas Initiative (PCNGi) aims to foster the use of renewable energy in transportation, particularly in light of recent fuel subsidy removals. Since its inception, the federal government, along with state agencies, sets up numerous conversion stations across Nigeria, making it easier for vehicle owners to switch to CNG.
As part of its efforts, the PCNGi introduces the Transport Fare Drop Programme in Abuja, which seeks to promote CNG as a cleaner and more affordable fuel option while helping to lower transportation costs for residents.
