The Central Bank of Nigeria on Thursday issued a revised guideline for accessing the Federal Government’s N300bn Power and Airline Intervention Fund.
The bank, in a circular posted on its website, said, “In a bid to catalyse financing of the real sector of the Nigerian economy, the CBN has, in accordance with Section 31 of the CBN Act 2007, approved the investment of the sum of N500bn debenture stock to be issued by the Bank of Industry.
“The sum of N200bn has been set aside for the refinancing/restructuring of SME/manufacturing portfolios while the sum of N300bn will be paid to power and airline projects. These guidelines relate to the N300bn intervention fund to the power and airline sector.”
In the circular, the CBN outlined the objectives of the funds, stated its managing agents, technical advisers, eligibility criteria, types of facilities, participating banks and modalities of intervention.
Other issues that were highlighted in the circular were notice for submission of proposals, application procedures, monitoring of projects, responsibilities of stakeholders, discontinuation of a credit facility, amendments and enquiries and returns.
The regulatory bank gave the types of facilities accessible from the fund as long term loans for new projects, refinancing of existing loans, refinancing of leases, and working capital for existing power and airline projects only.
It noted that all Deposit Money Banks were eligible to participate, excluding BOI.
“Asset Management Corporation of Nigeria may by special approval of the CBN management, be allowed to participate with respect to acquired projects of national economic importance,” the apex bank said.
The bank said the fund loans would have a maximum tenor of 15 years as determined by the project’s cash flow profile not exceeding July 31, 2025.
It added that the working capital facility would be one year duration with a provision for roll-over but not more than five years. “The repayment under this facility shall be amortised,” it said.