The Central Bank of Nigeria said yesterday it would provide N500 billion for investment in emergency power projects dedicated to industrial clusters in the country.
The funds is a debenture to be issued by the Bank of Industry (BOI) to banks at a maximum interest rate of 1 percent with a tenor of 10 to 15 years, CBN Governor Sanusi Lamido Sanusi said at a press briefing after the Monetary Policy Committee meetings in Abuja.
Banks are expected to invest the fund in 500MW in Lagos, 250MW in Kano, 200MW in Onitsha and Nnewi and 200MW in Port Harcourt and Aba.
Other areas to benefit from the emergency power funds are Funtua/Gusua/Malunfashi/Zaria with 200MW, Lokoja 200MW and Maiduguri/Gombe/Bauchi 200MW.
Power supply went down to its lowest level of 2200MW last week. It is currently put at 2600MW.
Sanusi said other power projects currently being financed by banks may also be refinanced from the N500 billion funds. He said banks will be required to secure the funds drawn from eligible securities.
"In addition, real sector projects certified bankable that emanate from the State Governors' engagement with the Bankers' Committee in line with the outcome of the Enugu Retreat will be accommodated under the facility", the CBN governor said.
He said the debentures would be issued in accordance with Section 31 of the CBN Act 2007, at a concessionary interest rate of not more than 7 percent.
He said the MPC also approved in principle the extension of this facility to banks for refinancing and restructuring existing portfolios to manufacturers.
The final approval, he said, will come after the consideration of the report of a technical committee to be set up to work out the modalities for implementation within one month.
He said membership of the committee comprises the CBN, the Bankers' Committee Sub-committee on Economic Development, Bank of Industry, Manufacturers Association of Nigeria and National Association of Small and Medium Enterprises.
Sanusi also said yesterday that federal government should implement the proposed deregulation of the petroleum sector.
He said the policy should be implemented because "you do not announce deregulation and then don't do it because what is happening now is that everybody is paying a black market price."
He said that everywhere, people buy petroleum products above the official price of N65. "If you buy N65 outside Lagos you have to stay in a queue for 24 hours," he said.
He said most of what people see in inflationary pressure reflect the fact that "people have already factored in the new price of the expected price of petroleum products and if you actually deregulate, you would find that the increase in pricing is not going to be anything significant given the fact that people are use to it."
Sanusi said Nigeria is in a situation in which "Nigerians are paying a black market price of petroleum products if they find it. Two, they are paying with inflationary cost of deregulation when it has not been done."
Source: http://www.news.dailytrust.com/index.php?option=com_content&view=article&id=15071:cbn-to-fund-power- projects-with-n500bn-loan&catid=46:lead-stories&Itemid=140 (http://www.news.dailytrust.com/index.php?option=com_content&view=article&id=15071:cbn-to-fund-power-%20projects-with-n500bn-loan&catid=46:lead-stories&Itemid=140)
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.........hope is coming, but when?
Nice and wise development.
With N500 billion injected into the economy it should trickle down well.
Allah ya sa mu gani a kasa ya kawo mana rabon mu ;D
Rabon ka ta ina? Kai dan kwangila ne? Ku ne masu son ayi kashe mu raba da kudin kwangilar gwamnati ko? ;D
LOL,
haba BKGZ.
N500 billion ta shigo economy ai yakamata in dan yafuchi abun da zan samu ko ba directly ba.
N500 billioin is big enough to cause some growth to the economy ko.
There's a butterfly effect.
Before the money wasn't there and now it suddenly comes.
The contractor will get the money,he will employ people to work,buy things to work. The people that sold what he bought and the new employees have a new source of income that wasn't there before so they can start spending more and more and somehow it will get to me.
LOL,
P.S:
What does Sanusi mean by 'the real economy'?
You mean the Real Sector? It refers to the manufacturing sector of the economy.
I see.
Talking about the money trickling down,
i remember when during the last census the EU funded the program with a large sum of money; i don't remember how much.
But that time i know that someone i was owing was employed as a temporary staff and he paid me my money which i used to buy something i really needed. So kaga da irin wannan sa'ar i hope to ge something out of this one.
I wouldn't mind like 10million ;D ;D ;D
Ko kana da hanya ne in shigo KT yanzu yanzu? ;)
Tabdi. Ni kaina da zan samu N10million din, ai da yi ritaya. Kawai in shige siyasa.