FED GOVT OFFERS N10B CALM LOAN TO FACILITATE CNG CONVERSION. (PHOTO).

 Fed Govt offers N10b CALM loan to facilitate CNG conversion

• Plan captures credit for alternative energy

• 3,000 CNG tricycles begin operation in Lagos

• Imo govt unveils 5m cubic feet gas project

Nigerians wishing to convert their vehicles to gas-powered engines now have access to credit facilities.

Those intending to diversify to solar energy will also benefit from the new arrangement by the Federal Government.

A N10billion Credit Access for Light and Mobility (CALM) Fund was inaugurated yesterday in Abuja.

It will facilitate easy access to loans to buy the Compressed Natural Gas (CNG) conversion kits and solar energy panels.

The scheme is designed to mitigate the impact of petrol subsidy removal on consumers, who are now grappling with fare hikes.

A private vehicle owner needs almost N1 million to convert to CNG. A commercial bus owner pays less.

The Ministry of Finance Incorporated (MOFI), Credit Corporation (CREDICORP) and Presidential Compressed Natural Gas Initiative (PI-CNG)  launched the CALM Fund.

The loan, which has 15 to 20 per cent interest rates, is accessible through existing participating financial institutions (PFI).

MOFI Chief Executive Officer Armstrong Ume Takang said: “In response to the growing financial strain on Nigerians due to high energy and transportation costs, MOFI, CREDICORP, and the Presidential Initiative on CNG (PI-CNG) Ltd have joined forces to launch the CALM Fund.

“This new fund aims to provide affordable credit for Nigerians to obtain CNG conversion kits and other energy-saving solutions, making essential services more accessible to Nigerians while promoting sustainability.”

Takang said the CALM Fund offers a lifeline to households and businesses seeking practical ways to manage their high transportation and energy costs.

He said through flexible financing options, Nigerians can obtain immediate credit to convert their vehicles to CNG and adopt solar energy solutions, thereby reducing dependency on expensive fuels and lowering electricity bills.

CrediCorp Managing Director, Mr. Uzoma Nwagba, said N2.5 billion of the N10 billion loan is readily available for access, adding that it is expected to grow with time.

He stressed: “This fund can grow as much as the demand. Obviously, as more demand grows, the fund will be growing.

“We have an initial N10billion, with N2.5 billion available from today (yesterday).”

Nwagba said the eligibility for the loan is verifiable income.

On the interest rate, he said: “We have a high interest rate environment now.

“So we are giving up to 15 per cent to 20 per cent discount per annum on the interest rates that the financial institutions currently serve people.”

He added that it is all a factor of the beneficiary’s loanworthiness.

PI-CNG Chief Executive Michael Oluwagbemi said the programme would lead to the conversion of an additional 500,000 vehicles.

He said only 1.5 million vehicles are involved in commercial transport, conveying 90 per cent of Nigerians.

He noted that the bulk of the vehicles in the country are for private use.

Oluwagbemi said: “Additional 500,000 to a million additional vehicles will be converted because of this program.

“Though 1 million to 1.5 million vehicles constitute the commercial vehicle sector and move 90 per cent of Nigerians, the bulk of vehicles actually are in private hands. They just move less number of people,” he said.

Oluwagbemi said CNG is a cheaper and cleaner fuel.

It is cost-saving, says Presidency

Presidential Assistant on Social Media Dada Olusegun said the CALM Fund would reduce energy and transportation costs.

Olusegun, on his verified X handle, @DOlusegun, explained that the CALM Fund, facilitated through the Consumer Credit Scheme, would fast-track the adoption of CNG and solar energy as alternative, cost-effective solutions.

He said the Initiative would empower individuals and businesses to transition to cleaner, more sustainable energy sources.

Olusegun said under the CALM Fund, households and businesses can access loans at flexible interest rates to install solar energy systems and convert their vehicles to CNG.

He said the repayment schedule will span a long period, making it easier for beneficiaries to manage their finances.

3,000 CNG tricycles begin operation in Lagos

The National Union of Road Transport Workers (NURTW), Lagos State chapter unveiled its 3,000 CNG commercial tricycles worth N10.2 billion to ease transport challenges.

The CNG was launched by Alhaji Azeez Abiola, one of the NURTW chieftains, in Lagos.

Abiola, the Zonal Chairman, Tricycle Owners and Operators Association of Nigeria, an affiliate of the NURTW, said the initiative would bring succour to the masses by reducing the cost of transportation.

He said: “Over 3,000 CNG tricycles have been deployed to the state to ease the cost of transportation among the residents and at the same time reduce economic hardship,” he said.

Imo govt unveils 5Mscf gas plant

Also yesterday, Imo State Government said it was making progress in its bid to focus on CNG and Liquefied Petroleum Gas (LPG) development.

Commissioner for Petroleum and Natural Gas Development, Emeka Mgbudem, who stated this in Owerri, the state capital, said it had made substantial progress on its five million standard cubic feet (5Mscf) at Assa in Ohaji-Egbema Local Government Area.

He said the facility would be operational in the next 10 months.

Mgbudem added: “We are pleased to announce that a 5mscf Mother Station will be operational in Assa within the next 10 months.”

The commissioner said the initiative was part of the strategic plan to unlock the state’s gas potential, with five other companies currently negotiating feedstock and delivery terms to meet CNG and LPG requirements.

Mgbudem said: “We have successfully secured sufficient feedstock from Anoh Gas to meet our domestic demand  industry.”