Renda Africa, a Nigerian logistics startup, is betting that compressed natural gas (CNG) will offer a cheaper and more practical path to cleaner transport in Africa than electric vehicles in the near term. Through its embedded finance platform, SCALE by Renda, the company plans to convert more than one million vehicles across Nigeria, Ghana, and Kenya to run on CNG by 2027.
“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,” co-founder and CEO Ope Onaboye told .
Renda claims that with its one million vehicle target, it could eliminate 3.32 million metric tons of carbon dioxide emissions annually, equivalent to planting 115 million trees. It currently operates in over 25 Nigerian cities and Kenya, with plans to expand to Uganda, Rwanda, and Tanzania.
CNG has been part of Nigeria’s energy strategy for years. The country has about 11.8 million registered vehicles, according to the National Bureau of Statistics (NBS). Since the removal of fuel subsidies in 2023, pump prices have more than doubled, now ranging between ₦865 ($0.57) and ₦950 ($0.63) per litre. By contrast, CNG costs about half as much, at ₦450 ($0.30) per standard cubic metre, even after recent price increases.
But the upfront conversion cost—typically between ₦750,000 ($497) and ₦3mn ($1,991) per vehicle—has slowed adoption, despite government backing. Renda hopes to address this gap with credit-based repayment plans that allow drivers to pay as little as ₦2,500–₦3,500 ($1.66–$2.32) daily over six to 24 months, often less than their daily fuel expenditure.
Renda is not a converter. It relies on a network of accredited conversion centres with kit suppliers from India, Italy, and Nigeria, and partners with CNG pump operators and regional gas suppliers. Its SCALE mobile app serves individual drivers, while a web platform caters to fleet operators. A third product, mPOWER, targets unionised drivers in motor parks with short-term credit.
“We are not building stations directly, but we partner with CNG pump operators, fleet depots, and regional gas suppliers,” Onaboye said.
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 requested for higher credit limits. The company earns commissions on the services financed through the platform, such as maintenance and conversions.
Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda raised $1.9 million in pre-seed funding in 2024 to expand SCALE. Since launch, the platform has onboarded over 2,000 drivers and customers, with Ibadan slated as its next market in southwest Nigeria.
The company is concentrating on ride-hailing cars, delivery fleets, buses, minibuses, tricycles, and long-distance trucks. By focusing on these high-utilisation segments, the company hopes to demonstrate that CNG adoption can deliver both economic savings for drivers and measurable cuts in emissions.
Although it is betting heavily on CNG, the company is preparing for an eventual transition to electric mobility. “We are future-proofing SCALE by Renda to support EV fleet management when the time is right,” Onaboye said.
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