The Presidential Compressed Natural Gas Initiative (PCNGI) has partnered financial institutions to provide affordable credit for vehicle conversion to Compressed Natural Gas (CNG), in a move aimed at scaling up adoption among transport operators across the country.
The initiative involves Moniepoint Microfinance Bank Limited, the Nigerian Consumer Credit Corporation (CreditCorp), and the National Credit Guarantee Company Limited.
The scheme is designed to eliminate the high upfront cost of CNG conversion, which has remained a major barrier to adoption among low-income Nigerians.
Speaking at the flag-off ceremony in Abuja on Wednesday, the Chief Executive Officer of PCNGI, Ismaeel Ahmed, said affordability remains the biggest challenge in the push for CNG adoption.
He said the new partnership directly tackles that obstacle.
“This is a very significant partnership. What we are doing here is to ask a simple question: what is the barrier for Nigerians to switch to CNG? And the answer is clear, it is the cost of the conversion kit and installation,” Ahmed said.
“We are reducing that barrier. Not only are we bringing down the cost, but we are also ensuring that these kits are supplied at cost. There is no profit margin built into it, because the goal is mass adoption and not profit-making,” he added.
Under the new arrangement, motorists will now be able to convert their vehicles and repay the cost over time instead of paying upfront.
Ahmed explained that repayment plans will be flexible, depending on individual income levels.
“Instead of paying, for example, N100,000 upfront for conversion, you can now pay that amount over several months, six months, or even shorter, depending on your agreement with the financial institution,” he said.
“Some people may decide they want to finish repayment in one month. Others may spread it over six months. The key thing is that the convenience is there, and affordability is now within reach for everyday Nigerians,” he added.
He said the shift to CNG would significantly reduce transport costs for commercial operators, especially tricycle and taxi drivers.
“If a keke rider spends about N40,000 weekly on petrol and another N10,000 on maintenance, that is N50,000 every week. With CNG, fuel costs could drop by 60 to 70 per cent, while maintenance could reduce to about N10,000 monthly,” he said.
On his part, the Managing Director of CreditCorp, Uzoma Nwagba, said the initiative is part of efforts to ensure Nigerians feel the impact of ongoing economic reforms.
“When this administration started, there were major reforms, exchange rate unification and subsidy removal. These reforms have improved the macroeconomic environment, but the big question has always been: what about the people at the bottom?” he said.
Nwagba said the credit scheme would significantly reduce borrowing costs compared to existing market rates.
“Today, personal loans in many institutions can go as high as 4 per cent monthly, and in some cases up to 10 per cent monthly,” he said.
“With CreditCorp-supported facilities, we are seeing loans as low as 9 per cent annually, and for higher-risk individuals, around 20 to 24 per cent. That is a massive reduction,” he added.
He disclosed that 100,000 CNG conversion kits are already available, with plans for nationwide expansion.
“We are calling on all financial institutions to join this initiative. The goal is to provide affordable credit to millions of Nigerians,” he said.
Also speaking, Moniepoint Microfinance Bank’s Lead for Business Lending, Tobi Amirah, said the partnership targets rising transportation costs affecting households and businesses.
“Our data shows that transportation cost is a major challenge for businesses and individuals, and this partnership is designed to solve that problem,” she said.
Ahmed also disclosed that the Federal Government is supporting the adoption of electric vehicles alongside CNG.
He said President Bola Tinubu has approved zero import duty on electric vehicles to encourage adoption, while charging infrastructure is being developed in collaboration with relevant agencies.
The initiative comes amid ongoing economic reforms, including fuel subsidy removal and exchange rate unification, which have increased transport and energy costs nationwide.
