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The N250bn stimulus package provided by the Central Bank of Nigeria, CBN, for large and small scale gas investments in September is a comprehensive initiative which it collaborated with the ministry of petroleum resources on.
The hike in the prices of petrol prompted the initiative, to help check the pressures that follow.
It was issued under the National Gas Expansion Programme, NGEP, with the hopes of stimulating investment in the gas utility chain.
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Accessing CBN N250bn stimulus package
The CBN targets an autogas phase for vehicle owners hence its partnership with investors for the construction of gas facilities.
Large scale
Under the Power and Airline Intervention Fund (PAIF), large scale gas projects will be financed with N100 billion per obligor.
The CBN determines term loan of 10 years by activity and a two-year moratorium on principal indemnity. The working capital holds at N500 million per obligor.
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Small Scale
The NIRSAL Microfinance Bank (NMFB) is in charge of financing smaller operatives. The SMEs and MSMEs are getting the fund under the Agribusiness/Small and Medium Enterprises Investment Scheme (AgSMEIS).
Activity will also determine the term loan which will not exceed N50 million, with working capital of N5 million per obligor.
A 10 years tenor, one-year working capital facility, and two years on principal repayment are the conditions for small scall operatives.
Interest Rate for CBN N250 billion stimulus package
The interest rate for both large and small scale ventures is not more than 5% yearly and will last until February 28, 2021. That rate reverts to 9% per annum beginning March 1, 2021.
