As part of the efforts to stimulate finance to critical sectors of the economy, the Central Bank of Nigeria (CBN) has released the guideline for the recently introduced N250 billion intervention facilities to help stimulate investment in the gas value chain.
Within the framework, large-scale projects under the intervention would be financed under the Power and Airlines Intervention Fund (PAIF), in line with existing guidelines regulating the PAIF, while small-scale operators and retail distributors would be financed by the NIRSAL Microfinance Bank (NMFB) and/or any other Participating Financial Institution (PFI) under the Agribusiness/Small and Medium and Medium Enterprises Investment Scheme (AgSMEIS).
The apex bank said the term loan for manufacturers, processors, and wholesale distributors would be determined based on the activity and would not exceed N10 billion per obligor, while working capital is pegged at maximum of N500 million per obligor.
It also disclosed that any other mid- to downstream gas value chain related activity recommended by the Ministry of Petroleum Resources and the manufacturers, processors, wholesale distributors and related activities shall be funded under the Power and Airline Intervention Fund PAIF.
Further in the guidelines, loan for manufacturers, processors, wholesale distributors shall be determined based on the activity and shall not exceed N10 billion per obligor.
Also, the maximum of N500 million per obligor, SMEs, and retail distributors shall be determined based on the activity and shall not exceed N50 million per obligor.
By Chibisi Ohakah, Abuja
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