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FG Unveils N10bn Plan To Boost CNG Usage Through Consumer Credit

Published

11 months ago

October 16, 2024

The Federal Government on Wednesday unveiled a N10 billion plan that would boost the conversion of about one million additional vehicles to compressed natural gas usage and the adoption of solar energy through the provision of consumer credit to income earners.

To achieve this, the Ministry of Finance Incorporated, MOFI, Nigerian Consumer Credit Corporation, Credicorp, and the Presidential Initiative on Compressed Natural Gas, PICNG, have signed a deal that would make N2.5 billion fund available to finance the conversion of vehicles to CNG by private individuals.

The fund, known as the Credit Access for Light and Mobility (CALM) Fund, will 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.

Speaking at the signing ceremony in Abuja, Managing Director, MOFI, Dr. Armstrong Takang said the fund will enable Nigerians to obtain loans through Participating Financial Institutions, PFIs, providing a pathway to sustainable energy without the financial burden of upfront costs.

Takang disclosed that MOFI will aggregate and expand the consortium fund, collaborating with private and institutional investors to grow the initial N10 billion fund.

He explained that the fund is one of the measures being put in place to solve the unintended consequences of petrol subsidy removal which has led to a spike in the cost of transportation and high tariffs in the electricity sector.

“The good news is that the Federal Government has a solution to that which is the CNG programme but we also recognize the fact that it is not possible for us to have to pay for everything up front especially for items that are capital intensive.

“That is why the Federal Government came up with the programme of consumer credit and we established the Nigerian Consumer Credit Corporation, Credicorp. We believe Credicorp is very important as Nigerians. We do not need to have to afford the total amount to buy the basic items that we need every day whether it is in terms of trying to convert our cars to CNG, or having to pay for the conversion kit upfront. It is capital intensive and most people cannot afford it, yet they need it.

“The government has provided an opportunity to have access to credit to afford items such as that. We also have major challenges with the increase in electricity in our homes. Most of us are paying more now and it is creating a challenge in terms of affordability. The fund will also allow Nigerians to acquire credits for solar systems”, he stated.

Also speaking, the Director/CEO of PICNG, Engr. Michael Oluwagbemi said the fund will address the high cost of mobility by creating an avenue to convert their vehicles to CNG without having to pay for it immediately.

“Credicorp is partnering with us to launch this access for private individuals to afford the cost of conversion and the cost of conversion is quite elevated given our current realities. Beyond immediate access to consumer credit to access this conversion kit and conversion at PICNG accredited conversion centres through the PFIs, this also in the long run will encourage domestic manufacturing of the kits”, he stated.

Engr. Oluwagbemi noted that with the deal, the programme expects an additional 500,000 to one million vehicles to be converted in the coming months besides the initial one million vehicles target set at the beginning of the programme.

On his part, Managing Director, Credicorp, Engr. Uzoma Nwagba said the goal is to enable people to have a better life by accessing goods and services that they would normally have to save up for.

Nwagba said the programme is tailored for Nigerians with a steady income stream, such as workers in both public and private sector, as well as business owners.

He pointed out that the programme would boost the demand side CNG conversions and solar panels, ensuring that producers have markets for their products across the country.

News

W’Cup Qualifiers: Super Eagles Edge Rwanda 1-0 To Revive Qualification Hopes

Published

3 hours ago

September 6, 2025

Editor

In a high-stakes 2026 FIFA World Cup qualifier at the Godswill Akpabio International Stadium in Uyo, Nigeria secured a vital 1–0 victory over Rwanda, breathing new life into their qualification hopes.

The only goal of the match came in the 51st minute when Tolu Arokodare capitalized on a loose ball in the penalty area, slotting it past Rwanda’s goalkeeper to give Nigeria a crucial lead.

The first half ended goalless, with both teams cautious in their approach. Nigeria’s defense, marshalled by Calvin Bassey, held firm despite Rwanda’s tactical shifts in the second half.

News

NCDC Alerts Nigeria As DR Congo Declares Ebola Outbreak

Published

4 hours ago

September 6, 2025

Editor

The Nigeria Centre for Disease Control and Prevention (NCDC) has issued a public health advisory following the confirmation of a new Ebola Virus Disease (EVD) outbreak in the Democratic Republic of Congo (DRC).

As of September 4, 2025, the DRC has reported 28 suspected cases and 15 deaths, including four health workers, in the Kasai Province.

The Director-General of NCDC, Dr. Jide Idris, said the agency will continue to monitor the regional and global situations as there are no cases of Ebola virus disease in Nigeria, as of now.

However, the NCDC is taking proactive measures to prevent the spread of the disease, and it is working closely with relevant Ministries, Departments, Agencies, and Partners to strengthen preparedness and response measures in Nigeria.

Idris urged Nigerians to practice good hand hygiene by washing their hands regularly with soap under running water or using hand sanitisers. He also advised Nigerians to avoid physical contact with anyone showing symptoms of infection or an unknown diagnosis.

Additionally, individuals should handle animals with gloves and protective clothing, and cook animal products thoroughly to reduce the risk of wildlife-to-human transmission.

Furthermore, people should avoid direct contact with the blood, saliva, vomit, urine, and other bodily fluids of suspected or confirmed EVD cases.

The NCDC advises Nigerian citizens and residents to avoid all but essential travel to countries with confirmed Ebola cases. Those with recent travel history to affected areas who experience symptoms should promptly call the NCDC hotline (6232) or their State Ministry of Health hotline for assessment and testing.

They should also shelter-in-place to avoid further spread through shared transport systems and await dedicated responders for assessment and possible transport to a treatment centre.

The NCDC is strengthening surveillance across the country, including borders and airports, and enhancing laboratory capacities for quick testing of suspected cases.

Idris assured that the agency will continue to provide periodic updates on the situation as the Ebola outbreak in the DRC is caused by the Zaire strain, with a mortality rate estimated at 57%.

The World Health Organisation (WHO) has deployed experts to support response efforts, and the DRC has activated its Public Health Emergency Operations Centre.

News

5% Fuel Surcharge: What Nigerians Should Know

Published

4 hours ago

September 6, 2025

Editor

File Copy: Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele

Confusion has erupted online over a supposed 5% fuel surcharge under Nigeria’s new tax laws, with many fearing a sudden increase in fuel prices.

The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Saturday through a post on X, clarified what is fact and what is fiction.

The controversy arises from the recent passage of the Nigeria Tax Act, 2025, which consolidates and harmonises previous tax laws.

Some social media posts suggested that President Bola Tinubu’s administration had introduced a new surcharge on fuel, sparking public concern.

Oyedele clarified: “The charge is not a new tax introduced by the current administration. The provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007. Its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.”

According to Oyedele, the surcharge is meant to fund road infrastructure, an area that has historically suffered from underfunding.

Over the years, Nigeria’s road network has faced chronic maintenance challenges, resulting in potholes, travel delays, and higher vehicle operating costs.

Oyedele further noted that the surcharge is intended to create a dedicated, predictable funding source for road construction and maintenance.

Oyedele addressed key questions raised by citizens:

Will the surcharge start automatically in January 2026?

No. It will only take effect when the Minister of Finance issues an order published in the Official Gazette:

“The surcharge does not take effect automatically with the new tax laws. It will only commence when the Minister of Finance issues an order published in the Official Gazette as stated under Chapter 7 of the Nigeria Tax Act, 2025. This safeguard ensures careful consideration of timing and economic conditions before implementation,” Oyedele stated.

Does it apply to all fuels?

No. Household energy products such as kerosene, LPG, and CNG are exempt. Clean and renewable energy products are also excluded to support Nigeria’s energy transition agenda.

Why maintain the surcharge amid economic hardship?

Oyedele explained that the fund is meant as a dedicated mechanism for road maintenance:

He said, “The surcharge is designed as a dedicated fund for road infrastructure and maintenance. If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy. This practice is virtually universal with over 150 countries imposing various charges ranging between 20% to 80% of fuel products to guarantee regular investment in road infrastructure.”

Could subsidy savings cover road funding instead?

The Chairman of theCommittee on Fiscal Policy and Tax Reforms said: “While subsidy savings will provide some funding, they are insufficient to meet Nigeria’s huge and recurring road infrastructure needs among other public finance needs. A dedicated fund ensures reliable and predictable financing for roads, complementing the budget and ensuring roads are not left underfunded.”

Does this contradict the tax reform objective of easing citizens’ burden?

Oyedele reassured: “The reforms have already reduced multiple taxes and removed or suspended several charges that directly affect households and small businesses, such as VAT on fuel, excise tax on telecoms, and the cybersecurity levy. By harmonising earmarked taxes, government is reducing duplication and ensuring a more efficient tax system.”

Why not remove the surcharge entirely?

He clarified: “Yes, the surcharge has been removed from the FERMA Act and incorporated into the new tax laws which are designed to provide a forward-looking legal framework for Nigeria. Keeping this provision in place within a harmonised legal framework ensures Nigeria is prepared to address critical challenges, such as sustainable road financing and even climate change impacts. It is not about immediate implementation, but to ensure the law provides a clear and effective framework for when it becomes necessary in the future.”

In summary, Oyedele stressed that the surcharge is not new, not immediate, and selectively applied. Its inclusion in the law is about transparency, preparedness, and sustainable funding for Nigeria’s roads, and it aims to address long-standing gaps in infrastructure financing.
(PUNCH)