Nigeria Launches CNG Credit Scheme to Cut Transport Costs

The Nigerian government, through the President's Compressed Natural Gas Initiative, has partnered with financial institutions, including Moniepoint Microfin Bank and the Nigerian Consumer Credit Corporate, to introduce a CNG credit scheme aimed at reducing transport costs for low-income operators. Launched in Abuja, the initiative targets the installation of 100,000 CNG conversion kits, which will allow commercial drivers to switch from petrol to compressed natural gas, significantly cutting fuel costs by 60-70%.

The scheme is designed to remove upfront cost barriers, enabling drivers to spread the cost of conversion over several months, with interest rates as low as 9% annually, compared to existing rates of up to 48%. This initiative is expected to provide substantial savings, with keke riders potentially saving around N30,000 monthly on maintenance alone.

The program aims to directly benefit ordinary Nigerians by addressing high energy costs and improving the macroeconomic environment.