BY NAOMI UZOR
Central Bank of Nigeria, CBN, yesterday, said it has disbursed N171.12 billion to 30 power and airline projects through the Bank of Industry, BOI.
Speaking at a one day bi-annual dialogue on impact of government intervention funds in the transformation of the Nigerian economy, organised by the Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture, NACCIMA, the Governor of CBN, Lamido Sanusi, said as at May 31, 2012, N171.12 billion has been disbursed through the BOI for airline and power projects under power and airline intervention fund.
Sanusi said 14 airline projects got N90.45 billion while 16 power projects got N80.67 billion. He stated that Power and Airline Intervention Fund, PAIF, was introduced in September, 2010 to provide the leverage that will motivate and stimulate private sector involvement in the power and airline sectors, as well as fast track the development of both sectors of the economy.
“The CBN provided N300 billion facility for investment in debentures which was issued by the Bank of Industry, BOI, in accordance with section 31 of the CBN Act 2007, for investment in power and airline projects”.
The funds are channeled through the BOI for on-lending to the Deposit Money Banks at a maximum interest rate of 1.0 per cent for disbursement at concessionary interest rate of not more than 7.0 per cent and a tenor of 10-15 years,” he said.
Sanusi said that the private sector remains the key driver of growth and wealth creation as employer, investor, source of finance, motor of competitiveness and in building capacity and human capital.
Beyond this core role of providing opportunities for people to lift themselves out of poverty, businesses can contribute to resolving particular development issues. It can be the source of valuable expertise, ingenuity and capacity that help find new solutions be it to educational needs, health needs, environmental problems, or the supply of public goods.
On the N200 billion Commercial Agriculture Credit Scheme (CACS), he said the scheme was established in 2009 to finance large ticket projects along the agricultural value chain and is administered at a single digit rate of 9 per cent to beneficiaries for a 7 year period.
“State Governments, including the FCT can access a maximum of N1.0 billion each for on-lending to farmer’s cooperatives or other areas of agricultural interventions that suit them. Since the inception of the scheme to end-June, 2012 the CBN has released the sum of N197.045 billion to DMBs for disbursement to 252 beneficiaries made up of 222 private promoters and 30 State Governments” he said.