CBN Issues Guidelines On Power, Airline Intervention Fund

The Central Bank of Nigeria (CBN), says non-power companies that want to
refinance existing loans have to apply two years earlier.

The apex bank gave this directive in a circular posted on
its Website titled: “N300 billion Power and Airline Intervention Fund Revised
Guidelines.”

It said that it would no longer grant any old request.

The CBN, however, said that such restriction was not
applicable to captive power projects being implemented and managed by power
companies.

It said that gas-to-power promoters must also tender
verifiable evidence of “off-taker purchase agreements” for their projects to
be eligible.

The
apex bank said that the Asset Management Corporation of Nigeria (AMCON), by
special approval of the CBN, could be allowed to participate in the revised
guidelines.

It
said that the approval would require AMCON to present a project of national
economic importance.

“Eligible
projects promoted by private or public sector sponsors or a combination of both
must be structured either as profit-oriented business or a public service,” it
said.

The apex bank said that all applications must have
contracted cash-flow or financing support to ensure repayment of principal and
interest.