Nigerian logistics startup, Renda Africa, is promoting compressed natural gas (CNG) as a cost-effective and practical solution to reduce vehicle emissions, positioning it as an alternative to electric vehicles across Africa.
Through its embedded finance platform, SCALE by Renda, the company says it aims to convert over 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 TechCabal.
The startup is looking to leverage finance and technology to convert a million vehicles to compressed natural gas, cutting costs and carbon emissions.
What You Should Know
Renda claims that converting one million vehicles could eliminate 3.32 million metric tons of carbon dioxide emissions annually, equivalent to planting 115 million trees.
Currently, the company operates in more than 25 Nigerian cities and Kenya, with plans to expand into Uganda, Rwanda, and Tanzania.
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.
How SCALE by Renda Works
Renda does not convert vehicles itself. Instead, it partners with a network of accredited conversion centres sourcing kits from India, Italy, and Nigeria, while collaborating with CNG pump operators and regional gas suppliers.
The company’s SCALE mobile app caters to individual drivers, while a web platform serves fleet operators. Additionally, mPOWER, a product for unionised drivers in motor parks, provides short-term credit for conversions and maintenance.
“We are not building stations directly, but we partner with CNG pump operators, fleet depots, and regional gas suppliers,” Onaboye explained.
According to the team, SCALE leverages alternative data, including trip history, vehicle usage, and wallet top-ups to assess creditworthiness.
What This Means
CNG has long been part of Nigeria’s energy strategy. 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, with CNG costing about ₦450 ($0.30) per standard cubic metre, making it significantly cheaper even after recent price increases.
Renda says it is focusing on high-utilisation vehicle segments, including ride-hailing cars, delivery fleets, buses, minibuses, tricycles, and long-distance trucks.
By targeting these segments, industry experts say Renda aims to demonstrate that CNG adoption delivers both economic savings for drivers and measurable emissions reductions.
Talking Points
It is impressive that Renda Africa is betting on compressed natural gas (CNG) as a near-term solution for cleaner transport in Africa, offering a practical alternative to electric vehicles while addressing the continent’s affordability and infrastructure challenges.
This approach positions Renda as a solution to real transportation and environmental problems, particularly for ride-hailing cars, delivery fleets, buses, and long-distance trucks that consume high volumes of fuel and face rising costs.
At Techparley, we see how tools like SCALE by Renda, with embedded finance and real-time service tracking can accelerate the adoption of alternative fuels beyond major urban centres, delivering both economic savings and measurable carbon emission reductions.
By leveraging credit-based repayment plans, partnerships with accredited conversion centres, and local gas suppliers, Renda Africa lowers the upfront cost barrier, making CNG adoption feasible for individual drivers and fleet operators alike.
However, adoption will depend on awareness, trust in the technology, and continued accessibility of CNG infrastructure. Education, affordability, and ongoing support will be key to scaling the platform effectively.
