The Federal Government has unveiled an initiative that will provide financing options for Nigerians 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 on Wednesday 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 in installments 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 emphasizing the wider objective of cutting emissions and advancing sustainable transport solutions.

Also speaking, the Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Engr. Uzoma Nwagba, disclosed that the Corporation provides loan facilities at interest rates as low as nine per cent.

He noted that this is a stark contrast to the significantly higher rates, ranging between 48 and 120 per cent, commonly offered by many commercial banks, making the scheme more accessible and affordable for ordinary Nigerians.

Nwagba explained that the initiative is designed to ease the financial burden associated with converting vehicles to Compressed Natural Gas (CNG), particularly for transport operators who rely on their vehicles for daily income.

The CREDICORP MD said by offering more flexible and lower-cost credit options, the Nigerian government aims to accelerate adoption of cleaner energy alternatives while improving the economic stability of beneficiaries.

He further encouraged transport workers, including drivers and fleet operators, to organize themselves into cooperative groups to better access the financing opportunities.

According to him, such collective structures not only enhance eligibility for the loans but also promote accountability and ease of repayment, reinforcing CREDICORP’s broader mandate of expanding consumer credit to support critical lifestyle and energy transitions among Nigerians.

“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”