Renda Africa to Convert 1 Million Vehicles to CNG by 2027, Boosting Green Transport in Nigeria

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In the near-term race for cleaner and more affordable transport across Africa, Nigerian logistics startup Renda Africa is placing a major bet not on electric vehicles, but on compressed natural gas (CNG). The company has unveiled an ambitious plan to facilitate the conversion of over one million vehicles from petrol to CNG by 2027, targeting key markets in Nigeria, Ghana, and Kenya through its innovative embedded finance platform, SCALE by Renda.

This strategic move comes as Nigeria grapples with soaring fuel costs. Following the removal of petrol subsidies in 2023, pump prices have surged to between ₦865 ($0.57) and ₦950 ($0.63) per litre. In stark contrast, CNG offers a lifeline, costing roughly half as much at ₦450 ($0.30) per standard cubic metre, even after recent price adjustments.

Despite the clear economic benefits, a significant hurdle has slowed widespread adoption: the steep upfront conversion cost, which can range from ₦750,000 ($497) to ₦3 million ($1,991) per vehicle. Renda Africa aims to dismantle this financial barrier.

“By removing upfront cost barriers and enabling real-time service tracking, we help drivers and fleet owners transition more affordably to alternative fuels, without becoming a converter ourselves,” Ope Onaboye, co-founder and CEO of Renda Africa, explained.

Tech Cabal reports that the company’s solution is a credit-based repayment model that allows drivers to pay as little as ₦2,500–₦3,500 ($1.66–$2.32) daily over a period of six to 24 months—a sum often less than what they would spend on a single day’s petrol.

According to Tech Cabal, Renda is not a conversion company. Instead, it operates as a financial enabler, connecting drivers with a network of accredited conversion centres that use kits from suppliers in India, Italy, and Nigeria. “We are not building stations directly, but we partner with CNG pump operators, fleet depots, and regional gas suppliers,” Onaboye added.

The company’s technology stack includes the SCALE mobile app for individual drivers, a web platform for fleet operators, and mPOWER, a product offering short-term credit to unionised drivers at motor parks. To assess creditworthiness for its largely unsecured loans, SCALE analyses alternative data points like trip history, vehicle usage, and digital wallet top-ups, though collateral may be required for higher credit lines. Renda earns commissions on the services it finances, including conversions and maintenance.

Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda secured $1.9 million in pre-seed funding in 2024 to scale its operations. Since launching, the platform has successfully onboarded over 2,000 drivers and customers. Currently active in more than 25 Nigerian cities and Kenya, Renda is preparing to enter Ibadan next, with further expansion planned for Uganda, Rwanda, and Tanzania.

The initiative carries significant environmental potential. Renda calculates that meeting its one-million-vehicle target could eliminate 3.32 million metric tons of carbon dioxide emissions annually, an impact equivalent to planting 115 million trees. The company is initially focusing on high-utilisation vehicles such as ride-hailing cars, delivery fleets, buses, tricycles, and long-distance trucks to demonstrate the immediate economic and environmental advantages.

While its current focus is firmly on CNG, Renda is looking ahead to the next evolution in mobility. “We are future-proofing SCALE by Renda to support EV fleet management when the time is right,” Onaboye confirmed, ensuring the platform remains adaptable for an electric future.

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Renda Africa’s initiative to convert one million vehicles to CNG has the potential to revolutionise the tourism sectors in Nigeria and throughout the continent. For one, transportation is a major expense for tour companies, hotels with shuttle services, and safari operators. By cutting fuel costs by nearly 50%, these businesses can significantly lower their operational overhead. This could translate into more competitively priced tour packages, making Nigeria a more affordable and attractive destination for both domestic and international tourists.

Plus, global travellers are increasingly eco-conscious. The ability to market transport services as “cleaner” and “lower-emission” provides a powerful, unique selling proposition. This aligns with the growing demand for sustainable and responsible tourism, potentially attracting a new segment. This segment consists of environmentally aware tourists who might otherwise overlook Nigeria. Tour operators can highlight their use of CNG vehicles as part of their commitment to protecting the environment.

The high cost of petrol often limits the range and frequency of transport services, especially to remote tourist locations. Cheaper fuel encourages more transport operators to service these routes, improving accessibility to national parks, cultural heritage sites, and rural attractions. A wider, more reliable transport network makes it easier for tourists to explore beyond the major cities.

By making vehicle operation more profitable for individual drivers and small-scale transport entrepreneurs, Renda’s financing model fosters economic stability. Financially stable operators are more likely to invest in vehicle maintenance and provide better customer service, resulting in a safer, more comfortable, and more professional experience for tourists.

A surge in demand for CNG, driven by a million converted vehicles, will inevitably spur investment in the construction of more CNG refuelling stations across the country. This expanded infrastructure will support the transport sector and make self-drive tourism more viable for visitors who rent vehicles.

 

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FAQs

1. What is Renda Africa’s primary mission?

Renda Africa aims to make transportation cleaner and more affordable by financing the conversion of over one million petrol-powered vehicles to Compressed Natural Gas (CNG) across Africa by 2027.

2. Does Renda Africa perform the vehicle conversions itself?

No, Renda Africa is a finance platform. It partners with a network of accredited conversion centres and CNG providers to facilitate the process for drivers and fleet owners, removing the upfront cost barrier.

3. How do drivers pay for the conversion through Renda?

Through its platform, SCALE by Renda, the company offers credit-based repayment plans. Drivers can make small daily payments, typically between ₦2,500 and ₦3,500, over a 6 to 24-month period.

4. Why is CNG a viable alternative to petrol in Nigeria right now?

Following the removal of government fuel subsidies, the price of petrol has more than doubled. CNG currently costs about 50% less than petrol, offering significant daily savings for high-mileage drivers and transport businesses.

5. What is the potential environmental impact of this project?

Renda Africa estimates that successfully converting one million vehicles to CNG could reduce carbon dioxide emissions by 3.32 million metric tonnes each year, which is comparable to the environmental benefit of planting 115 million trees.