Central Bank of Nigeria (CBN) data has shown that electricity fi rms have repaid N50.289 billion as at June 2017, from the total loans accessed by the power industry in the N300 billion Power and Aviation Intervention Fund (PAIF). Th e data indicated that N156.639 billion had been disbursed to power fi rms for 43 power projects across the country, representing 56.47 per cent of the N277.4 billion disbursed out of the total funds so far.
Further, it said the total fund accessed by the power fi rms as of June 2017, N50.289 billion had been repaid, representing 32.1 per cent of the total amount obtained by the sector in the period under review. Giving details of the disbursements on a quarterly basis, the data noted that as at September 2016, power fi rms’ cumulative loans from the fund stood at N141.44 billion for 41 projects, representing 53.94 per cent of a total of N262.2 billion disbursed in the period, while the industry repaid N39.43 billion from their borrowings from the fund.
Also, in December 2016, power fi rms cumulative repayments stood at N42.578 billion from a cumulative of N151.852 billion borrowed from the PAIF out of cumulative disbursements of N272.615 billion. Th e projects for which the funds were assessed still stood at 43. It further observed that in March 2017, cumulative repayments of N46.6 billion had been recorded from the power fi rms, while cumulative disbursements to the power industry stood at N152.58 billion for 43 projects.
Th e setting up of the fund was heralded by the CBN’s realization that without adequate infrastructure, the Nigerian economy cannot overcome its structural challenges and achieve sustainable growth and development. In this regard, the CBN established an Infrastructure Finance Offi ce in March 2010, thereafter, the N300 billion Power and Aviation Fund (PAIF) was launched in 2011.
Th e fund is administered by the Bank of Industry for onward lending to Deposit Money Banks at a maximum interest rate of 1.0 per cent, and disbursement at concessionary interest rates of no more than 7.0 per cent to client/projects of a 10 to 15-year tenor.
To be eligible for the fund, the CBN said power fi rms must be a corporate entity, duly registered in Nigeria, involved in electricity power supply value chain that includes power generation, transmission, distribution, gas-to-power projects and associated services.