The Ministry of Finance Incorporated (MOFI), in collaboration with the Credit Corporation (CREDICORP) and the Presidential Compressed Natural Gas Initiative (PI-CNG), has launched the “Credit Access for Light and Mobility (CALM)” Fund in Abuja.
The initiative aims to mitigate the effects of the Premium Motor Spirit (PMS) subsidy removal, which has led to increased transportation costs for Nigerians.
The CALM Fund offers loans with interest rates between 15% and 20% and is accessible through Participating Financial Institutions (PFIs) across the country. Speaking at the launch, Mr. Armstrong Ume Takang, CEO of MOFI, explained that the fund provides affordable credit for CNG conversion kits and other energy-saving solutions, promoting accessibility and sustainability for Nigerians.
“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,” Mr. Takang stated.
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The Managing Director of CREDICORP, Mr. Uzoma Nwagba, announced that N2.5 billion of the N10 billion fund is immediately available, with plans for expansion as demand grows. Nwagba emphasized that eligibility for the loan requires a verifiable income to allow financial institutions to assess applicants properly.
Addressing the high-interest environment, Nwagba highlighted that the fund offers a 15% to 20% discount on standard rates, dependent on the borrower’s creditworthiness. Additionally, he noted that the consumer credit program aims to support local manufacturing of CNG kits and solar panels, reducing reliance on imports and stimulating investment.
P-CNGI Chief Executive, Engr. Michael Oluwagbemi, shared that the program targets converting an additional 500,000 vehicles to CNG, emphasizing that although 1 to 1.5 million commercial vehicles serve 90% of Nigerians, the bulk of vehicles in the country are privately owned.
Oluwagbemi stressed the benefits of CNG, noting it as a cleaner, cheaper fuel that can reduce dependence on imported petroleum, create jobs, and support local manufacturing, aligning with the government’s job creation and economic development goals.
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