Obligor Can not Access More than N10bn of Gas Intervention Fund

The Central Bank of Nigeria has capped the maximum loan an obligor can access under its N250 billion intervention fund for the gas sector at N10 billion.

The apex bank disclosed this in a guideline titled ‘Framework for the implementation of intervention facility for the national gas expansion programme’, that was published on Friday.

“Shall be determined based on the activity and shall not exceed N10bn per obligor,” the apex bank stated.

For manufacturers, processors, and wholesale distributors, the CBN said the amount they can access in terms of “Working capital is maximum of N500m per obligor.”

According to the CBN, the fund was established to stimulate investment in the gas value chain and deepen growth in the sector.

The apex bank said the weak investment in the sector had resulted in minimal production and utilisation of Compressed Natural Gas and Liquefied Petroleum Gas as clean alternative sources of domestic energy in Nigeria.

It said failure to harness the nation’s gas resources has negatively affected its productivity, fiscal and social, environmental and economic opportunities.

It added that the objectives of the intervention facility 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.

The apex bank also said it plans to fast-track the adoption of CNG as the fuel of choice for transportation and power generation, as well as push LPG as the fuel of choice for transportation, captive power and cooking.