By Joseph Erunke, Abuja

The Federal Government has launched a new financing scheme to help Nigerians convert their petrol-powered vehicles to Compressed Natural Gas,CNG, in a move aimed at reducing transportation costs and promoting cleaner energy.

The initiative is being 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 during the official launch of the strategic partnership on CNG vehicle conversion financing, the Executive Chairman and Chief Executive Officer of Pi-CNG & EV, Ismaeel Ahmed, said the programme would allow Nigerians to spread payment for vehicle conversion over six months, making the process more affordable.

Ahmed disclosed that 100,000 conversion kits are already available for deployment in the first phase of the programme, with plans underway to expand distribution across the country as demand rises.

He said the transition to CNG would not only shield Nigerians from the impact of global oil market disruptions caused by tensions in the Middle East, but would also contribute to lower carbon emissions and more sustainable transportation.

Also speaking, the Managing Director and Chief Executive Officer of CREDICORP, Engr. Uzoma Nwagba, said the corporation would provide loans at interest rates as low as nine per cent.

According to him, the rates are far lower than the 48 to 120 per cent interest commonly charged by many commercial banks, making the programme more accessible to ordinary Nigerians.

Nwagba said the initiative is particularly targeted at transport workers and vehicle owners who depend on their vehicles for daily income but may struggle with the upfront cost of conversion.

He explained that lower-cost financing would help accelerate the shift to cleaner fuel alternatives while improving the economic stability of beneficiaries.

The CREDICORP boss also urged drivers, transport operators and fleet owners to form cooperative groups to improve their chances of accessing the loans.

He noted that cooperative structures would strengthen accountability, simplify repayment and align with the corporation’s broader goal of expanding consumer credit for critical lifestyle and energy transitions.

“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,” Nwagba said.