CNG: “A strengthened structure is needed for the N10 billion CALM fund”

The Managing Director/Chief Executive Officer of Transcorp Energy Ltd, Mr. Christopher Ezeafulukwe, said to realize the objectives of the Credit Access for Light and Mobility (CALM) Fund, a strengthened structure and competent administrators must be put in place.

The fund is intended to facilitate the realization of the federal government’s goals for the use of compressed natural gas by Nigerians.

Ezeafulukwe advised learning from the mistakes of past failed government interventions to prevent a repeat of the current intervention fund.

He noted that good intentions worthy of praise were initiated, but due to the conditions of their implementation, their goals were not realized.

The Federal Government recently unveiled a N10 billion scheme aimed at accelerating the conversion of approximately one million additional vehicles to CNG and solar energy adoption through the provision of consumer loans to income earners.

The Ministry of Finance (MOFI), the Nigerian Consumer Credit Corporation Credicorp and the Presidential Initiative for Compressed Natural Gas (PICNG) have signed an agreement to release a N2.5 billion fund to finance the conversion of vehicles to CNG by private companies. faces.

Dubbed the Credit Access for Light and Mobility (CALM) Fund, the fund is designed to provide Nigerians with affordable loans to purchase CNG conversion kits and other energy-saving solutions.

The Managing Director of MOFI, Dr. Armstrong Takang, explained that the intervention mechanism will help Nigerians access loans through participating financial institutions, PFIs, providing a pathway to sustainable energy without the financial burden of upfront costs.

According to him, MOFI will consolidate and expand the consortium fund by partnering with private and institutional investors to increase the initial fund of N10 billion.

Takang explained that the scheme is one of the strategies activated by FG ​​to address the unintended consequences of the removal of subsidies, which led to astronomical increases in fares and higher electricity rates for Group A customers.

Ezeafulukwe, in an interview with the New Telegraph over the weekend, also said information and orientation were needed to increase the use of CNG by Nigerians.

He said: “You need to make sure that the structure for its use is strengthened and you have honest people who will manage it, and you need to make sure that there are checks and balances in that structure that will ensure that the fund is used correctly.

This is a good intention and in our country so many things happen with good intentions but then when implemented they all go wrong.

“So they need to learn from previous initiatives that failed to ensure that this time it gets done right and this time we have no stories of failed initiatives because many Nigerians are looking forward to the help that this initiative will condense natural gas will give them an advantage given the rising prices of fuel pumps and the fact that the exchange rate also continues to be volatile and we don’t even know how much more of a rise could occur over the next year.

“So, there are proper structures in place, honest and trustworthy people to manage it and have serious sanctions and set an example for anyone who tries to deviate from the intended goals of the fund.”

He added: “To ensure greater penetration of CNG, information is important. Orientation. Nigerians need to know that this is available. They must know the consequences of this. They need to know how they will benefit from the transition.

“That’s what happens when people know they’re going to do it. You won’t miss what you don’t know. You go for what you know. It is when people know, then they position themselves. Secondly, there is a need for critical grassroots outreach.”

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