The new financing framework under the Pi-CNG & EV programme will enable motorists and transport operators to access loans for vehicle conversion, as part of efforts to promote cleaner and more affordable mobility.
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) has signed a memorandum of understanding with major financial institutions to expand access to credit for Nigerians seeking to convert petrol and diesel vehicles to cleaner energy alternatives.
The Pi-CNG & EV is a federal government programme, under the Renewed Hope Agenda of President Bola Tinubu, established to drive the adoption of compressed natural gas (CNG) and electric vehicles across Nigeria.
It coordinates policy implementation, infrastructure rollout, and partnerships aimed at reducing fuel costs, cutting emissions, and promoting cleaner transportation alternatives.
The partnership is designed to create a structured financing framework that will enable motorists, commercial transport operators, and fleet owners to access consumer credit and credit guarantees for converting petrol and diesel vehicles to CNG.
Under the arrangement, the participating institutions will provide loans and guarantee instruments aimed at lowering the upfront cost of conversion, a major barrier to adoption of cleaner fuel alternatives.
Officials said the move is part of the federal government’s broader push to promote affordable and sustainable transport options, particularly in the face of rising fuel prices.
The initiative targets individual car owners as well as commercial drivers and logistics operators, many of whom depend on petrol and diesel vehicles for their livelihoods.
Speaking at the signing ceremony, the Executive Chairman of the initiative, Ismail Ahmed, described the deal as a practical step towards building an inclusive and sustainable energy transition.
He said the programme is anchored on three pillars, availability, acceptability and affordability, which he described as critical to scaling adoption nationwide.
Mr Ahmed explained that availability focuses on expanding infrastructure, including conversion centres and supply networks, to ensure consistent access to CNG. Without this, he noted, demand cannot be sustained.
On acceptability, he said public confidence remains key, stressing the need to assure Nigerians of the safety, reliability and long-term benefits of CNG technology.
He identified affordability as the core objective of the new partnership, noting that access to financing will enable more Nigerians to switch without bearing prohibitive upfront costs.
“With this partnership, ordinary Nigerians now have structured options to finance their CNG conversions through trusted credit channels backed by guarantee support,” he said.
Mr Ahmed said the initiative aligns with the federal government’s efforts to cushion the impact of rising fuel costs while promoting cleaner energy alternatives in the transport sector.
He added that increased adoption of CNG and electric vehicles would not only reduce transportation expenses for households and businesses but also create jobs across conversion centres, maintenance services and local fabrication value chains.
According to him, the clean mobility programme is both an energy transition and an economic opportunity.
“Every converted vehicle brings savings to households, reduces emissions and strengthens our energy independence,” he said.
Representatives of the partner institutions including the Managing Director of CrediCorp, Uzoma Nwagba; Executive Director, Risk Management at NCGC, Ezekiel Oseni; and Senior Vice President, Business Loans at Moniepoint, Tobi Amira reaffirmed their commitment to supporting the rollout of financing solutions.
They said the collaboration would accelerate the adoption of cleaner fuels, reduce pressure on transport costs and contribute to lowering vehicular emissions.
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