CBN Caps N10bn Maximum for Obligors under the N250bn Gas Intervention Fund
The Central Bank of Nigeria (CBN) has capped the maximum loan an obligor can access under its N250 billion intervention fund for the gas sector at N10 billion.
This is contained in a guideline released on Monday, titled, “Framework for the implementation of intervention facility for the national gas expansion programme”.
The apex bank explained that the intervention facility for the national gas expansion programme is targeted at making Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), for auto motion, and domestic cooking, captive power and small industrial complexes respectively.
The fund, the CBN explained in the release was established to stimulate investment in the gas value chain and deepen growth in the sector.
It stressed further that the weak investment in the sector had resulted in minimal production and utilisation of CNG and LPG as clean alternative sources of domestic energy in Nigeria, noting that failure to harness the nation’s gas resources has negatively affected its productivity, fiscal and social, environmental and economic opportunities.
The apex bank listed the objectives of the intervention facility to include improved access to finance for private sector investment and also to enhance investments in the development of infrastructure to optimise the domestic gas resources for economic development.
For manufacturers, processors, and wholesale distributors, the CBN said the amount they can access in terms of working capital is a maximum of 500 million per obligor.
The intervention covers the following eligibilities: the establishment of gas processing plants and small-scale petrochemical plants; gas cylinder manufacturing plants; L-CNG regasification modular systems; auto gas conversion kits or components manufacturing plants CNG primary and secondary compression stations.
Others are establishment and manufacturing of LPG retail skid tanks and refilling equipment; development/enhancement of auto gas transportation systems, conversion and distribution infrastructure, and enhancement of domestic cylinder production and distribution by cylinder manufacturing plants and LPG wholesale outlets.
By Chibisi Ohakah, Abuja