FG fixes N10bn maximum loan limit for Gas Intervention Fund

FG fixes N10bn maximum loan limit for Gas Intervention Fund

 

Chinazor Megbolu   |  

The Federal Government through the Central Bank of Nigeria (CBN) has fixed the maximum loan limit of gas intervention fund to N10 billion.

The CBN at the weekend said an obligor can access under its N250 billion gas intervention fund at N10 billion.

The CBN hinted through its ‘Framework for the Implementation of Intervention Facility for the National Gas Expansion Programme’’, stressing that part of the loan’s conditions for manufacturers, wholesale distributors and processors is that the facility will be determined based on the activity and shall not exceed N10bn per obligor.

According to the CBN; “working capital is maximum of N500m per obligor.”

The CBN in the issued guidelines stated it unveiled the fund in order to boost investment in the gas value chain sector.

The nation’s Apex bank added the initiative is also part of measures towards increasing financial support to the critical sectors of the economy.

The CBN further explained that the low level of investment on the sector had caused low production and utilisation of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as clean alternative domestic energy source in the country.

The CBN, however, maintained it planned to speed up the utilisation of CNG as the fuel of choice for transportation and power generation, as well as LPG as the fuel of choice for transportation, domestic cooking and captive power.

The CBN, however, buttressed organisations that qualifies for funding under the scheme are only establishment of gas cylinder manufacturing plants, establishment of gas processing plants and small-scale petrochemical plants, establishment of auto gas conversion kits or components manufacturing plants and establishment of L-CNG regasification modular systems amongst others.

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