FG unveils financing scheme for CNG vehicle conversion
Schneider Electric has projected that the Consumer-Packaged Goods (CPG) sector could face significant production losses and rising cost pressures by 2030, citing inadequate adoption of Artificial Intelligence (AI).

According to the study, the expected strain on the industry will largely stem from manufacturing delays, increased downtime, and equipment failures, which are likely to undermine operational efficiency and output.

The study, which surveyed 1,453 global executives, released recently, also revealed a widening gap between AI Return On Investment (ROI) ambition and operational reality in the consumer-packaged goods sector.

It said: “The survey reveals CPG manufacturers expect an accelerating margin crisis, with inefficiencies including manufacturing delays, downtime, and equipment failure already amounting to an estimated 20.3 per cent of the final manufactured product cost today.

Respondents report 15.2 per cent of mean manufacturing revenue lost today due to delays, downtime, rework, quality deviations or suboptimal asset use.”

It, however, further warned that the preventable losses are expected to worsen sharply, reaching 21.37 per cent next year and rising toward 29.14 per cent by 2030.

The report stressed the need for companies in the CPG sectors to use industrial intelligence, which includes the combined power of AI, data and automation to reinforce competitiveness in a decade of accelerating volatility.

“Many CPG manufacturers are betting on industrial AI to cut the projected rise in preventable production losses,” it stated.

He noted that expectations around AI are rising sharply in the CPG sector, even as industry readiness lags, with the report showing that only about one in eight manufacturers (13 per cent) have AI fully integrated across core operations and decision-making processes.

Meanwhile, the Federal Government has unveiled an initiative that will provide financing options for Nigerians who wish to convert their vehicles to use Compressed Natural Gas (CNG).

The programme is driven by the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), in partnership with the Nigerian Consumer Credit Corporation (CREDICORP) and a commercial bank.

Speaking yesterday in Abuja at the official flag-off and strategic partnership on CNG vehicle conversion financing, the Executive Chairman/Chief Executive Officer (CEO), Presidential Initiative on Compressed Natural Gas & Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, said the introduction of financing options like paying by instalments over six months makes the conversion more affordable for Nigerians.

According to him, there are currently 100,000 conversion kits ready for deployment in the first phase, with plans to scale up distribution nationwide to meet growing demand.

He noted that adopting CNG would help cushion the effects of the Middle East crisis, while also emphasising the wider objective of cutting emissions and advancing sustainable transport solutions.