Nigerian logistics startup Renda Africa is betting on compressed natural gas (CNG) as a cheaper, more practical path to cleaner transport than electric vehicle.
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 TechCabal.
Renda estimates the switch could eliminate 3.32 million metric tons of carbon dioxide emissions annually. This is the equivalent of planting 115 million trees. The company currently operates in more than 25 Nigerian cities and in Kenya, with expansion plans for Uganda, Rwanda, and Tanzania.
Nigeria has about 11.8 million registered vehicles, according to the National Bureau of Statistics. Since the removal of fuel subsidies in 2023, petrol prices have more than doubled to between ₦865 ($0.57) and ₦950 ($0.63) per litre. By comparison, CNG costs about ₦450 ($0.30) per standard cubic metre, even after recent hikes.
But adoption has been slowed by high conversion costs, which typically run from ₦750,000 ($497) to ₦3 million ($1,991) per vehicle. Renda aims to close this gap by offering daily repayment plans of ₦2,500–₦3,500 ($1.66–$2.32) over six to 24 month. This is often less than a driver’s daily fuel spend.
Renda itself does not build conversion kits or stations. Instead, it partners with accredited conversion centres, CNG pump operators, and regional gas suppliers. Kit suppliers include firms from India, Italy, and Nigeria.
The SCALE app is geared toward individual drivers, while a web platform caters to fleet operators. A third product, mPOWER, extends credit to unionised drivers at motor parks. The company uses alternative data including trip history and wallet top-ups to assess creditworthiness.
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, it has onboarded over 2,000 drivers, with Ibadan slated as its next Nigerian market.
The company is targeting high-usage segments such as ride-hailing cars, delivery fleets, buses, minibuses, tricycles, and long-distance trucks, arguing these will deliver the greatest savings and environmental impact.
Although focused on CNG today, Renda says it is preparing for the shift to electric mobility. “We are future-proofing SCALE by Renda to support EV fleet management when the time is right,” Onaboye said.
