CBN Issues Guidelines For N250bn Gas Sector Value Chain Stimulation
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.
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