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CBN Disburses N181bn Power, Airline Intervention Fund

By on February 7, 2013

The Central Bank of Nigeria (CBN) said it has disbursed a total of N181.42 billion under its Power and Airline Intervention Fund (PAIF), as at December 31, 2012.
The banking sector regulator disclosed this in a chart posted on its website Wednesday.

It showed that in the month under review, while 15 airline projects benefited a total of N90.92 billion from the fund, a total of N90.50 billion was also disbursed to 21 power projects as at December. However the chart did not reveal the names of the firms and projects that benefitted from the sum.

In a bid to catalyse financing of the real sector of the Nigerian economy, the CBN had approved N300 billion to be applied to power and airline projects. Part of the objectives of the Fund includes: to fast-track the development of electric power projects, fast-track the development of the aviation sector of the Nigerian economy by improving the terms of credit to Airlines and serve as a credit enhancement instrument to improve the financial position of the Deposit Money Banks (DMBs).
While the Bank of Industry (BOI) manages the Fund, the Africa Finance Corporation (AFC) serves as Technical Adviser to the Fund.

Meanwhile, the value of the naira was stable against the United States dollar at the banking sector watchdog’s regulated Wholesale Dutch Auction System (WDAS) Wednesday.

Data obtained from the apex bank’s website showed that unlike the preceding auction where the Bank sold a total of $150 million to dealers, of the $120 million it offered yesterday, only $112 million was sold.

Thus, the naira maintained its value of N155.74 to a dollar.

However, at the interbank segment of the forex market, the local currency declined marginally by 5 kobo to close at N157.25 to a dollar, compared to the N155.20 it attained the preceding day.

[Thisday]