In a strategic initiative aimed at alleviating the financial burden on Nigerians grappling with soaring energy and transportation costs, the federal government has officially launched the Credit Access for Light and Mobility (CALM) Fund. The announcement was made during a Memorandum of Understanding (MoU) signing ceremony held in Abuja on Wednesday.
The CALM Fund, which will be overseen by the Ministry of Finance Incorporated (MOFI), the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on CNG (PI-CNG) Ltd, is designed to provide accessible loans for Compressed Natural Gas (CNG) conversion kits and solar energy installations. This initiative aims to promote sustainability while reducing dependency on costly fuels.
Dr. Armstrong Takang, CEO of MOFI, emphasized that this initiative is part of the government’s efforts to provide cheaper alternative energy sources for Nigerians and their businesses. He stated that the partnership includes MOFI expanding the initial ₦10 billion fund through collaborations with private and institutional investors. CREDICORP will act as the Fund Manager responsible for loan management and offering credit guarantees, contributing an initial ₦2.5 billion. PI-CNG Ltd will facilitate vehicle conversions and provide discounted packages for CALM loan users.
“The high cost of transportation due to fuel subsidy reforms has created significant challenges for many families,” Dr. Takang remarked. “These reforms are necessary for building a robust economy but come with unintended consequences. We have a collective responsibility to find solutions.”
He further explained that many Nigerians struggle with upfront costs for capital-intensive items like CNG conversion kits. The CALM Fund aims to provide access to credit, enabling individuals to afford these essential items without needing to pay the total amount upfront.
In addition to addressing transportation costs, Dr. Takang highlighted rising electricity prices as another challenge facing households. He noted that the program will also support access to solar energy solutions, allowing families to maintain or even improve their standard of living at reduced costs.
Uzoma Nwagba, Managing Director of CREDICORP, explained how Nigerians can secure loans through Participating Financial Institutions (PFIs). Accredited PI-CNG conversion centers will also promote these financing options to their customers.
Nwagba further underscored the initiative’s potential to stimulate domestic manufacturing of conversion kits, which could foster job creation while reducing energy costs for Nigerians. “This kind of scheme has a tendency to attract investment that will enable these conversion kits to be manufactured domestically,” he noted.
The CALM Fund represents a significant step towards providing sustainable energy solutions in Nigeria, empowering citizens to transition away from costly fuels while enhancing their quality of life through innovative financial solutions. These programs are part of the government’s broader efforts to accelerate the country’s transition to cleaner energy solutions, and they represent a significant step toward achieving Nigeria’s renewable energy and carbon reduction goals.
