CNG - News Agency Of Nigeria

Muhyideen Jimoh
Oct, Fri, 2024

Stakeholders earmark N10bn fund for CNG conversion

1,582 total views today

By Emmanuella Anokam

The Ministry of Finance Incorporated (MOFI) and other stakeholders are partnering to provide N10 billion credit to Nigerians for Compressed Natural Gas(CNG) conversions.

The stakeholders are Nigerian Consumer Credit Corporation (CREDICORP) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).

At the agreement signing on Wednesday in Abuja, the partners unveiled the N10 billion Credit Access for Light and Mobility (CALM) Fund, in response to growing financial strain on Nigerians, due to high energy and transportation costs.

The News Agency of Nigeria (NAN) reports that the Pi-CNG and CREDICORP are among the portfolios companies under MOFI, an investment and assets management establishment of the Federal Government.

The new fund will enable Nigerians to obtain loans for CNG conversions kits and energy-saving solutions through Participating Financial Institutions (PFIs), providing a pathway to sustainable energy without the financial burden of upfront costs.

Speaking, Mr Uzoma Nwagba, Managing Director/Chief Executive Officer, CREDICORP, said MOFI would aggregate and expand the consortium fund, collaborating with private and institutional investors to grow initial N10 billion fund.

Nwagba explained that the CREDICORP would act as Fund Manager; using its expertise in consumer credit to manage loan disbursements and offer credit guarantees.

“We are setting aside a fund that will allow Nigerians specifically access credits to convert their vehicles to CNG with one to three years repayment duration.

“CREDICORP will seed the CALM Fund with N2.5 billion, ensuring that Nigerians can access affordable financing at 15 to 20 per cent per cent interest rate, through Participating Financial Institutions (PFIs).

“People are charged different interest rates depending on their institutions and credit worthiness, financial behavior, earnings and diligence with paying back previously,” he said.

He said the Pi-CNG Ltd. would serve as a service provider, facilitating the conversion of vehicles to CNG through authorised centers and offering discounted conversion packages for consumers using CALM loans.

Michael Oluwagbemi, Chief Executive Officer, Pi-CNG, said the need for Nigerians to be mobile and enjoy affordable, eco-friendly fuel and reliable transportation made President Bola Tinubu to introduce the Pi-CNG programme.

Oluwagbemi said to achieve this for a vast majority of consumers, the president initiated the launch of the conversion incentive programme for the commercial sector.

“The Consumer Credit Corporation is partnering with us to launch this access for private individuals to access consumer credits to afford the cost of conversion, to enjoy the low cost of CNG and the access it gives for transportation.

“This scheme has the tendency to attract the investment that will enable these conversion kits to be manufactured domestically; another programme is being coordinated with MOFI, on domestic manufacturing capacity for the CNG sector,’’ he said.

The Pi-CNG boss explained that the development would enable civil servants or workers in the organised private sector whom their salaries/income could be tracked and verified by a financial institution to benefit from the fund.

He said it would naturally translate into other sectors of the economy, because the civil servants and organised private sector workers could leverage their vehicle at low cost for the economic benefit.

Earlier, Dr Armstrong Takang, Managing Director/Chief Executive Officer, MOFI, said the fund would address the unintended consequences arising from oil subsidy reforms.

He said one of the unintended consequences was the cost of transportation which spiked over the last several months, creating a lot of challenges for many families who were finding it difficult to move around.

“Through flexible financing options, Nigerians will be able to obtain immediate credit to convert their vehicles to CNG and adopt solar energy solutions—reducing dependency on expensive fuels and lowering electricity bills,” he said.

Nigerians are encouraged to explore this opportunity by applying for CALM Fund loans through participating financial institutions (www.credicorp.ng/apply) while specific CNG conversion centres will market the options to consumers. (NAN)(www.nannews.ng)

Edited by Chijioke Okoronkwo

FG rewards Nigerian vehicle designer with electric car

Philip Daniel Yatai
Oct, Tue, 2024

Science & Tech

FG rewards Nigerian vehicle designer with electric car

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By Khadijat Ahmed/Lucy Ogalue

The Federal Government has rewarded Mr Enoch Tobiloba with an electric car, after emerging the winner of a challenge to design a hybrid car that uses both Compressed Natural Gas (CNG) and electricity.

Mr Joseph Osanipin, Director-General, National Automotive Design and Development Council (NADDC), presented the vehicle to Tobiloba in Abuja.

The News Agency of Nigeria (NAN) reports that the challenge was organised by the NADDC and the Office of the Special Assistant to the President on Youth Initiatives, Monitoring and Delivery.

The competition, which was held from Sept. 11 to Sept. 12 was designed to equip youths with the knowledge and skills needed to capitalise on the opportunities in the CNG value chain.

The initiative is in line with the Renewed Hope Agenda of President Bola Tinubu.

Osanipin expressed the Federal Government’s commitment to enhancing local auto industry and fostering innovation among Nigerian youths.

He emphasised the imperative of commencing the design of vehicles that are uniquely ours and produced with the topography of Nigeria in consideration.

“In a bid to elevate local content in vehicle manufacturing, the initiative encourages aspiring designers to engage in the full vehicle development process, starting from concept design to production.

“It all starts with designing. We want to engage Nigerians so that we can design vehicles, beginning with components such as rim, shock absorbers and other essential parts.

“The programme aims to gradually increase the local content of vehicles, allowing for a more sustainable automotive sector. Currently, efforts are underway to design and produce various component parts domestically.

“After the designing phase, we will gather people in Nigeria to produce these parts. Once we have successfully tested and integrated them, we can proceed to mass production,” Osanipin said.

While acknowledging the complexity of the project, the director-general expressed confidence in the timeline set for the next four years.

He, however, said that progress would be steady, as there were no immediate deadlines for completion.

“So it is gradual. We cannot say it will be done in two years or three years but we have taken the step and we are moving ahead with that step.

Let us see where it will take us in the next four years,” he said.

Osanipin congratulated the winner, who he identified as EV brand Ambassador and urged him not to relent in his endeavours.

“So we want you to continue to empower yourself, develop yourself, and then see how this will lead us as a country,” he said.

The recipient of the electric vehicle, Mr Enoch Tobiloba, a final year student of Yaba Technology College, expressed delight at the recognition and thanked the NADDC and the government.

“I am very happy because this has strengthened my hope in the future for automobile engineering and design in Nigeria.

”This is a motivation for me to keep doing what I do best, which is transportation design.

“This is an eye opener to everybody and other transportation design enthusiasts not to give up but try to find their way into auto industries in Nigeria to help boost the sector,” he said. (NAN)

Edited by Kadiri Abdulrahman