The Federal Government has stated that the highly anticipated Compressed Natural Gas (CNG) loan programme for private drivers is not yet operational, as its framework is still being finalized in collaboration with Credit Corp and other financial institutions.
Speaking in Abuja, the Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, explained that the loan facility will become available in the second quarter of 2025 once the modalities are completed.
“The loan facility programme for private drivers is yet to be operational. The programme modalities are being finalised with Credit Corp & partner financial institutions, and will be put into operation in the second quarter of 2025,” he stated.
Despite the delay in the loan programme, Oluwagbemi highlighted significant progress in vehicle conversions, revealing that over 40,000 vehicles have already been converted to CNG. Of these, 10,000 were directly incentivised by PCNGI in the past year.
He further clarified that PCNGI is not responsible for managing the loan programme, as it falls under the administration of *Credit Corp*, and is just one of several initiatives aimed at increasing CNG adoption.
“The loan programme, to be clear, is not operated by PCNGI but by Credit Corp. And it is just one of many incentives developed by PCNGI & partners to make CNG adoption easier and convenient,” he noted.
Meanwhile, the Commercial Incentive Programme, which provides free or subsidised conversions for commercial vehicle operators, has been operational since the fourth quarter of 2024 and is on track to meet its targets.
Addressing concerns about the growing queues at CNG refueling stations, Oluwagbemi attributed the congestion to the rapid increase in vehicle conversions and the time required to establish new refueling facilities.
“First, the queues result from an increased number of conversions and the lead time it takes to build a daughter station and permit them to operate safely,” he explained.
He revealed that Nigeria’s refueling infrastructure has expanded significantly, growing from just 11 functional stations in January 2024 to 54 licensed stations across 10 states.
To further ease refueling challenges, an additional 85 stations are currently under construction by private investors, including NNPCL, NIPCO, Bovas, Matrix, and AY Shafa.
“We expect at least 125-150 refueling stations to be operational in 18 states in the next 12 months at the current pace of development,” he added.
With these efforts, the government aims to accelerate the transition to CNG, reduce dependence on petrol, and promote cleaner energy alternatives across the country.
