The Federal Government, through the Presidential Compressed Natural Gas Initiative, has clarified that the much-anticipated CNG loan programme for private drivers is not yet operational.
It said the framework is still being finalised in collaboration with Credit Corp and other financial institutions. The Programme Director, PCNGI, Michael Oluwagbemi, disclosed this to our correspondent in Abuja.
“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 this, he noted that significant progress had been made in vehicle conversions, with over 40,000 vehicles already converted, including 10,000 that were directly incentivised by PCNGI in the past year.
Oluwagbemi also said the loan programme is not managed by PCNGI but by Credit Corp, and is just one of several initiatives designed to promote 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 clarified.
He further pointed out that another key initiative, 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 progressing towards its target.
“The Commercial Incentive programme that provides free or subsidised conversion to commercial vehicle operators has become operational since the fourth quarter of 2024 and is on course to meet its target,” he stated.
Oluwagbemi further revealed that more refueling stations were being developed across the country, with at least 125-150 expected to be operational in 18 states within the next year.
Speaking on the growing queues at CNG refueling stations, he attributed the situation to an increased number of 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 highlighted the significant expansion in refueling infrastructure, noting that while there were only 11 functional stations in January 2024, the country now has 54 licensed stations across 10 states.
He further disclosed that an additional 85 stations are 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 said.
