Amid rising fuel costs and unreliable electricity supply, the Federal Government of Nigeria has introduced a new credit scheme to help citizens switch to cost-effective and eco-friendly energy solutions. The Credit Access for Light and Mobility (CALM) Fund allows individuals to access loans for converting petrol-powered vehicles to Compressed Natural Gas (CNG) and installing solar power systems in homes and businesses.
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What is the CALM Fund?
The CALM Fund is a financing initiative launched by the Consumer Credit Corporation (CREDICORP) in collaboration with the Ministry of Finance Incorporated (MOFI) and the Presidential Compressed Natural Gas Initiative (PCNGi). This initiative aims to promote cleaner energy adoption in Nigeria by offering loans rather than grants, making it easier for citizens to afford CNG conversion and solar installations.
Loan Details and Eligibility
- Funding Amount: Covers up to 90% of the cost of conversion or solar installation.
- Equity Contribution: Applicants must provide a 10% down payment.
- Interest Rate: Fixed at 24% annually.
- Repayment Period: 24 months (2 years).
- Collateral: No traditional collateral is required, but applicants must have a clean credit history.
Who Can Apply?
To qualify for the CALM Fund, applicants must:
- Have a clean credit history from at least two recognized credit bureaus.
- Provide detailed vehicle information, including:
- Make and model (e.g., Toyota, Honda, Nissan)
- Year of manufacture (between 2000 and 2015)
- Registration and chassis/VIN number
- Engine type (4, 6, or 8 cylinders)
- Fuel system (Carburetor or Injector)
- Service history (if available)
- Mileage (optional)
- Obtain a vehicle assessment certificate for CNG conversion.
Where to Convert Vehicles to CNG?
The government has partnered with approved CNG conversion centers across Nigeria, with initial locations in Lagos and Ibadan:
Lagos:
- Automedics Ilupeju (LAG-046)
- Femadec (LAG-001)
- CGC Igando (LAG-044)
- Dana Motors (LAG-011)
- Mide Energy (LAG-042)
Ibadan:
- Ecogreen (OYO-009)
- Autoclinic (OYO-002)
More locations are expected to be added as the initiative expands.
How to Apply for the CALM Fund?
- Visit the official application portal: https://www.credicorp.ng/calm
- Click on “Apply Now” and fill out the application form.
- Provide required details, including personal, financial, and vehicle information.
- Submit the form and wait for CREDICORP to review your application.
- Receive confirmation and proceed with the next steps upon approval.
Solar System Financing
The CALM Fund also supports financing for:
- Solar panels
- Inverters
- Complete home solar systems
Like CNG conversion loans, solar applicants must pay 10% equity upfront, with the remaining 90% covered by CREDICORP under the same 24% interest rate and 2-year repayment tenure.
Why This Matters?
This initiative is not just about making alternative energy affordable—it is also aimed at:
- Reducing fuel dependency
- Lowering energy costs
- Creating job opportunities
- Encouraging local production of CNG kits
With over N2.5 billion in funding already allocated, the program is set to drive economic growth and sustainable energy adoption across Nigeria.
Conclusion
The CALM Fund is a game-changer for Nigerians looking to transition to cheaper and cleaner energy solutions. Whether you want to convert your car to CNG or power your home with solar energy, this initiative provides an accessible financing option.
For more details, visit the official CREDICORP website and start your application today.
Source: Nairametrics
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