Through its embedded finance platform, SCALE by Renda, the company plans to facilitate the conversion of over one million vehicles in Nigeria, Ghana, and Kenya by 2027. The goal, according to co-founder and CEO Ope Onaboye, is to lower entry barriers for drivers and fleet owners by offering credit-based repayment plans that spread the cost of CNG conversion.
“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,” Onaboye told TechCabal.
The company projects that achieving its conversion target could eliminate 3.32 million metric tons of CO₂ emissions annually, the equivalent of planting 115 million trees.
Cost advantage over petrol
Nigeria, with about 11.8 million registered vehicles (NBS), has struggled to accelerate CNG adoption despite long-running government support. A key stumbling block has been the conversion cost, which ranges between ₦750,000 ($497) and ₦3 million ($1,991) per vehicle.
Since the removal of fuel subsidies in 2023, petrol prices have more than doubled to ₦865–₦950 per litre ($0.57–$0.63). By contrast, CNG is still significantly cheaper at about ₦450 ($0.30) per standard cubic metre, making it an attractive option for cost-conscious drivers.
Renda’s repayment model allows drivers to pay ₦2,500–₦3,500 ($1.66–$2.32) daily over six to 24 months, often less than their typical fuel expenditure.
Network-driven model
Unlike traditional operators, Renda is not a converter itself. Instead, it works through a network of accredited conversion centres, sourcing kits from India, Italy, and Nigeria. It also partners with CNG pump operators and regional gas suppliers to ensure fueling availability.
The company’s SCALE app serves individual drivers, while a web platform targets fleet operators. A third service, mPOWER, provides short-term credit to unionised drivers in motor parks.
SCALE uses alternative data such as trip history, vehicle usage, and wallet top-ups to assess creditworthiness. Most loans are unsecured, though collateral may be required for higher limits. Renda earns commissions on financed services, including maintenance and conversions.
Expansion plans
Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda raised $1.9 million in pre-seed funding in 2024 to expand SCALE. The company currently operates in more than 25 Nigerian cities and Kenya, with expansion plans into Uganda, Rwanda, and Tanzania.
So far, over 2,000 drivers and customers have onboarded the platform, with Ibadan set to become its next Nigerian market. The startup is targeting ride-hailing cars, delivery fleets, buses, minibuses, tricycles, and long-distance trucks — high-utilisation vehicles that can deliver both cost savings and measurable emissions reductions.
While its immediate focus is on CNG, Renda says it is also preparing for the eventual shift to electric mobility. “We are future-proofing SCALE by Renda to support EV fleet management when the time is right,” Onaboye said.