While much of the global conversation on clean mobility revolves around electric vehicles (EVs), Nigerian logistics startup Renda Africa believes Africa’s near-term solution lies elsewhere: compressed natural gas (CNG).
Through its embedded finance platform, SCALE by Renda, the company aims to convert over one million vehicles in Nigeria, Ghana, and Kenya to run on CNG by 2027—a move it says could slash emissions and ease transport costs for millions.
Lowering Barriers for Drivers and Fleet Owners
Converting vehicles to CNG has long been hampered by cost. A single conversion typically runs between ₦750,000 ($497) and ₦3 million ($1,991)—a steep price for drivers already squeezed by rising fuel costs.
Since Nigeria’s fuel subsidy removal in 2023, petrol prices have more than doubled to ₦865–₦950 ($0.57–$0.63) per litre, while CNG remains about half the cost at ₦450 ($0.30) per standard cubic metre. Despite the savings, many drivers can’t afford the upfront switch.
That’s where Renda steps in. Instead of being a converter itself, the company partners with accredited workshops and CNG kit suppliers from India, Italy, and Nigeria. Through SCALE, it offers credit-based repayment plans, allowing drivers to spread conversion costs over 6 to 24 months, paying as little as ₦2,500–₦3,500 ($1.66–$2.32) daily—often less than what they spend on fuel each day.
“We remove the upfront cost barriers and give drivers a clear, affordable path to alternative fuels,” says Ope Onaboye, Renda’s co-founder and CEO.
The Numbers Behind the Bet
If successful, Renda’s million-vehicle push could eliminate 3.32 million metric tons of carbon dioxide annually—the equivalent of planting 115 million trees.
The company already operates in more than 25 Nigerian cities and Kenya, with expansion plans into Uganda, Rwanda, and Tanzania. Its initial focus is on ride-hailing cars, delivery fleets, buses, minibuses, tricycles, and long-haul trucks—segments with the highest fuel use and potential savings.
Tech-Driven Financing and Operations
Renda uses alternative data—including trip history, vehicle usage, and wallet top-ups—to assess creditworthiness. Most loans are unsecured, though collateral may be required for higher credit limits.
The SCALE platform comes in three forms:
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Mobile app: for individual drivers.
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Web platform: for fleet operators.
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mPOWER: tailored for unionised drivers in motor parks, offering short-term credit.
The company earns commissions on services financed through SCALE, such as conversions, maintenance, and fuel top-ups.
Building for Today, Preparing for Tomorrow
Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda secured $1.9 million in pre-seed funding in 2024 to expand SCALE. Since launch, it has onboarded over 2,000 drivers and customers, with Ibadan next on its rollout plan.
While CNG is the immediate priority, Renda is keeping an eye on the electric future. “We are future-proofing SCALE to support EV fleet management when the time is right,” Onaboye says.
Why It Matters
CNG has been part of Nigeria’s energy playbook for years, but adoption lagged due to high conversion costs and weak infrastructure. With fuel prices surging and emissions rising, Renda’s financing-led approach could turn CNG into a bridge technology—delivering economic relief for drivers today, while buying time for Africa’s eventual EV transition.
