The Federal Government has introduced a ₦10 billion initiative aimed at providing financial access to Nigerians for converting vehicles to Compressed Natural Gas (CNG) and installing solar home systems.
The program, titled Credit Access for Light and Mobility (CALM), was unveiled in Abuja on Wednesday in collaboration with the Ministry of Finance Incorporated (MOFI), the Presidential Initiative on CNG (Pi-CNG Ltd), and the Nigerian Consumer Credit Corporation (CREDICORP).
The ₦10 billion CALM Fund was established in response to rising energy and transportation costs, providing a solution for Nigerians facing financial strain due to the removal of fuel subsidies. The fund offers credit for CNG vehicle conversions and solar energy installations, enabling individuals and businesses to reduce dependency on costly fuels and high electricity bills.
Speaking at the launch event, Dr. Armstrong Takang, Managing Director of MOFI, emphasized that the fund is designed to ease the financial burden caused by the increase in transportation costs, driven by the removal of fuel subsidies. “These reforms are necessary, but they come with unintended consequences,” he noted. “The high cost of transportation is one of these, and this initiative offers a practical solution to mitigate those costs.”
Michael Oluwagbemi, CEO of Pi-CNG, highlighted the potential impact on mobility and local manufacturing. He stated, “This initiative not only promotes competition in the transportation sector but also supports the domestic production of CNG conversion kits, driving job creation and lowering energy costs for Nigerians.”
Uzoma Nwagba, Managing Director of CREDICORP, explained that the CALM Fund will enable Nigerians to access credit for vehicle conversions and solar energy adoption without the upfront financial burden. The program will offer loans through Participating Financial Institutions (PFIs) with the goal of making sustainable energy solutions more accessible.
The partnership between MOFI, Pi-CNG, and CREDICORP aims to expand the initial ₦10 billion fund by attracting additional private and institutional investors. CREDICORP will manage loan disbursements and offer credit guarantees, while Pi-CNG will facilitate vehicle conversions through authorized centers, offering discounted conversion packages.
With flexible financing options, the CALM Fund provides a lifeline for households and businesses seeking to manage their high energy and transportation costs, promoting a transition to cleaner, more affordable energy sources.