1 month ago
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The Ministry of Finance Incorporated, the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on Compressed Natural Gas Ltd launched the Credit Access for Light and Mobility Fund in Abuja on Wednesday during the signing of a Memorandum of Understanding between the three agencies.
This initiative is aimed at providing affordable credit for converting vehicles to Compressed Natural Gas and adopting solar energy solutions.
The Programme Coordinator and Chief Executive Officer of PI-CNG, Michael Oluwagbemi, emphasised the fund’s inclusivity, stating, “This programme offers opportunities for individuals who want to convert their vehicles.
“Whether you are a civil servant, employed in the organized private sector with a verifiable salary, or an entrepreneur whose income can be verified by a financial institution, you can also take advantage of this initiative.”
He expressed optimism about converting “an additional 500,000 to a million vehicles,” highlighting the role of individual vehicle owners in reducing transportation costs.
He stated that the CALM Fund was designed to be a lifeline for households and businesses seeking to manage escalating transportation and energy expenses.
Oluwagbemi added that with flexible financing options, Nigerians can now access immediate credit to convert their vehicles to CNG, significantly reducing dependence on costly fuels while also lowering electricity bills.
In the context of soaring petrol prices and rising living costs, Oluwagbemi noted that the CALM Fund addresses key challenges by encouraging the switch to CNG as a more cost-effective and environmentally friendly fuel.
He said through partnerships with Participating Financial Institutions, the fund facilitates sustainable energy access without the burden of upfront costs.
Oluwagbemi noted that this collaboration underscores the collective commitment of these organisations to support Nigerians.
The Managing Director of CREDICORP, Uzoma Nwagba, elaborated on the initiative’s significance, saying, “Today is one of those days we’ve been looking forward to, as no Nigerian is untouched by the impact of rising petrol and energy costs due to the necessary reforms.”
He added, “With CreditCorp, our goal is to enable people to improve their lives by accessing goods and services they would typically have to save for.
“MOFI will lead the aggregation and expansion of the initial N10bn fund, collaborating with private and institutional investors. CREDICORP will manage the fund, contributing N2.5bn to ensure affordable financing is available through PFIs.
“Meanwhile, PI-CNG Ltd will facilitate vehicle conversions via authorized centres, offering discounted packages for consumers utilizing CALM loans,” he stated.
The MD/CEO of MOFI, Dr. Armstrong Takang, addressed the need for sustainable solutions in light of recent economic reforms.
He acknowledged the unintended consequences of subsidy removals, stating, “These reforms are necessary, but they come with unintended consequences.”
He emphasised the Federal Government’s commitment to providing access to credit for essential needs, including CNG conversions and solar energy solutions.
He said the CALM Fund aims to empower Nigerians to maintain their standard of living without the financial strain of upfront payments for essential services.
Nwagba added that “Nigerians interested in taking advantage of this initiative can apply for CALM Fund loans through participating financial institutions by visiting credicorp.ng/apply. Accredited P-CNGI conversion centres will also actively promote this credit option to their customers.”
