FG Announces Date to Commence CNG Loan For Private Vehicle Owners
- The Nigerian government has announced that the CNG loan scheme for private vehicle owners is yet to commence.
- The Programme Director for the scheme, Michael Oluwagbemi, revealed that the project is currently being fine-tuned.
- He indicated that the programme is managed by CreditCorp in collaboration with partner financial institutions.
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government, via the Presidential Compressed Natural Gas Initiative (Pi-CNG), has disclosed that the CNG loan scheme for private drivers is yet to become operational.
The committee disclosed that the guidelines are still being fine-tuned in partnership with CreditCorp and other financial institutions.
Source: UGC
The loan scheme to become effective soon
The programme director for Pi-CNG, Michael Oluwagbemi, revealed this in Abuja recently.
According to Oluwagbemi, the loan facility for the programme is not yet functional as the modalities are being finalised with CreditCorp and other partner financial institutions.
He revealed that the scheme will become fully operational in the second quarter of this year.
He disclosed that some progress has been achieved in vehicle conversions, with over 40,000 vehicles already converted, including 10,000 incentivised by Pi-CNG in 2024.
He revealed that the loan scheme is not managed by the committee but by CrediCorp, and is one of the several projects designed to boost CNG adoption.
CreditCorp to provide the funding
According to him, another critical part of the initiative is the commercial incentive programme, which gives free or subsidised conversions for commercial vehicle operators.
He said the incentive has been operational since the last quarter of 2024 and is rapidly progressing.
He stated that the commercial incentive scheme provides free or subsidised conversions for commercial vehicle operators.
The programme director stated that more filling stations were developed nationwide, with at least 125-150 expected to become operational in 2026.
Investors are building more CNG stations
Oluwagbemi said the rising queues at CNG filling stations reflect the adoption by vehicle owners who embracing the CNG initiative.
He highlighted the importance of expanding the refuelling infrastructure, saying that the number has grown from 11 functional stations in 2024 to 54 nationwide.
Source: UGC
Oluwagbemi disclosed that another 85 stations are being constructed by investors, including NNPC, NIPCO, Bovas, Matric, and AY SHAFA.
“We expect at least 125-150 refuelling stations to be operational in 18 states in the next 12 months at the current pace of development,” he said.
Kojo Motors to establish CNG conversion centre in Owerri
Legit.ng earlier reported that Kojo Motors has set up a facility in Owerri, Imo State, for the conversion of gasoline-powered automobiles to compressed natural gas (CNG), a cheaper alternative to fuel.
The National Automotive Design and Development Council (NADDC) has commended this project for their collaboration, ThisDay reported.
Joseph Oluwemimo Osanipin, the Director General of the NADDC, praised Kojo Motors at the Compressed Natural Gas (CNG) Empowerment and Awareness Summit 2025, which had as its theme "Building a Youth-Based Nation through Cleaner Energy."
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Source: Legit.ng
