The Ministry of Finance Incorporated (MOFI) has teamed up with important partners to start a big money project called the Credit Access for Light and Mobility (CALM) Fund. This project has N10 billion to help Nigerians change their cars to use a cleaner and cheaper fuel called Compressed Natural Gas (CNG).
This cool project is working with the Nigerian Consumer Credit Corporation (CREDICORP) and another group called the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
Dr. Armstrong Takang, who is the boss at MOFI, said that this plan is here to help because changes in oil prices have made traveling more pricey.
He mentioned, “Because the oil price went up, moving around has become harder for families. So, we are doing this to help people spend less on getting from one place to another.”
What’s the CALM Fund?
The CALM Fund is like a big piggy bank that helps Nigerians get loans to buy stuff needed to switch their cars to CNG, which saves energy.
Mr. Uzoma Nwagba, who runs CREDICORP, said, “We have put money aside to help people get loans so they can change their cars to CNG. They can pay back in one to three years.”
CREDICORP is putting N2.5 billion in the bank, so people can borrow with interest rates between 15% to 20%. It depends on how good they are at paying back money they borrowed before.
Nwagba explained, “Different people pay different interest rates based on how well they’ve handled money in the past.”
Help with Changing Cars to CNG
The Pi-CNG will help people get their cars changed to use CNG at special centers. You can save money if you use the CALM loans.
Mr. Michael Oluwagbemi, head of Pi-CNG, shared that they want people to get affordable fuel that’s also good for the earth.
“Because everybody needs a way to get around that doesn’t cost too much, we introduced this program,” he said.
He added that working with CREDICORP will make it easier and cheaper for people to change their cars.
Thanks to the CALM Fund, Nigerians can now get quick loans to make their cars run on CNG, so they don’t have to rely on more expensive fuels.
Nigerians are encouraged to look into this chance by applying for CALM Fund loans through banks that are part of the program (http://credicorp.ng/apply).
Special centers will tell customers about this loan offer too.
Things You Should Know
In Lagos, changing cars can cost different amounts. For example, a company called MBH Power Limited charges N1.3 million to change a car with four cylinders, and N1.5 million for a car with six cylinders. If you change a few cars at once, you might get N50,000 off each car.
- Commercial cars can get their CNG conversion for free at six approved centers to help owners save money.
- To join this program, cars must be registered with groups like the Road Transport Employers’ Association of Nigeria (RTEAN), or the National Union of Road Transport Workers (NURTW), or they should be taxis owned by the state.
- At a place called Autogig, the cost depends on the car type, engine size, and CNG cylinder size, from 35 liters to 200 liters. Made to fit different car sizes, converting might cost between N1 million to N1.7 million.
The CALM Fund is here to help people get money they need to switch their cars without spending a lot upfront.