The Federal Government has rolled out a new financing programme to make it easier and more affordable for Nigerians to convert their petrol vehicles to Compressed Natural Gas (CNG).
The initiative, driven by the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), is being implemented in partnership with the Nigerian Consumer Credit Corporation (CREDICORP) and a commercial bank.
Speaking at the official flag-off of the CNG vehicle conversion financing scheme in Abuja on Wednesday, Ismaeel Ahmed, Executive Chairman/CEO of Pi-CNG & EV, said the programme introduces flexible repayment options, including instalment payments spread over six months.
Ahmed disclosed that 100,000 conversion kits are ready for the first phase, with plans to rapidly scale up distribution across the country to meet rising demand.
He added that wider adoption of CNG would help shield Nigerians from the impact of global oil market disruptions, such as the Middle East crisis, while reducing harmful emissions and promoting sustainable transportation.
9% Interest Rate, Massive SavingsIn his remarks, Engr. Uzoma Nwagba, Managing Director/CEO of CREDICORP, revealed that the corporation is offering loans at a highly subsidised interest rate of just 9 per cent, a sharp contrast to the 48–120 per cent rates charged by many commercial banks.
Nwagba explained that the scheme is specifically designed to ease the financial burden on transport operators and fleet owners who depend on daily vehicle income, describing it as a practical step towards cleaner energy and improved economic stability for beneficiaries.
He urged drivers, transport workers, and fleet operators to form cooperative societies to access the loans more easily, noting that group structures improve eligibility, ensure accountability, and simplify repayment.
Highlighting the economic benefit, Nwagba said converting to CNG slashes fuel costs by approximately 75 per cent.
“Once you convert your petrol vehicle to CNG, the cost of fueling that car comes down by about 75 per cent. That means if I spend N80,000 per week on my vehicle, I would now be spending N20,000 per week,” he said.
The programme is expected to accelerate the shift to cleaner, cheaper fuel alternatives and support the government’s broader goal of expanding consumer credit for essential energy transitions in Nigeria.
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