Federal Government Launches CALM Fund to Ease Energy and Transportation Costs for Nigerians

Written on 17/10/2024
The SUN NG

In response to rising energy and transportation costs, the federal government has introduced the Credit Access for Light and Mobility (CALM) Fund. The initiative aims to provide affordable loans for compressed natural gas (CNG) conversion kits and solar energy installations to promote sustainability and reduce fuel dependency.

The program will be managed by the Ministry of Finance Incorporated (MOFI), the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on CNG (PI-CNG) Ltd, aiming to alleviate financial pressures on Nigerians while supporting greener energy alternatives.



Speaking at the Memorandum of Understanding (MoU) signing ceremony in Abuja on Wednesday, CEO of MOFI, Dr Armstrong Takang, said that the initiative is part of efforts by the federal government to provide cheaper alternative energy sources for Nigerians and their businesses by empowering them through innovative financial solutions.

He said that the partnership consists of MOFI, which is tasked with expanding the initial ₦10 billion fund through collaborations with private and institutional investors; CREDICORP, acting as the Fund Manager responsible for loan management and offering credit guarantees, with an initial contribution of ₦2.5 billion; and PI-CNG Ltd, serving as a service provider to facilitate vehicle conversions and provide discounted packages for CALM loan users.

The CEO said: “Over the last several months, one of the things that most Nigerians, including all of us in here, have experienced is the high cost of transportation due to the reform taking away fuel subsidy. It is one of the unintended consequences of the reforms that are necessary if we are going to build a robust economy. Let’s be very clear.

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