CBN DISBURSES N181BN UNDER PAIF
The Central Bank of Nigeria (CBN) said it has disbursed a total of N181.42 billion under the Power and Airline Intervention Fund (PAIF).
According to data made available by the apex bank, the fund had been made available to 36 companies as at December 31, 2012.
The apex bank noted that it disbursed N90.92 billion to 15 airline companies while 21 power companies received N90.50 under the scheme.
The CBN had in 2011 set aside a N300 billion intervention fund for the development of the aviation and power sectors.
The intervention fund, according to the apex bank was to ensure the availability of immediate and long-term funds to address the financing required for the development of the aviation and power sectors.
The Fund was part of the N500 billion funding initiative of the CBN unveiled in 2009 to boost lending to the real sector. The operating guideline mandates banks to lend at 7.0 per cent, and disburse the fund to the borrower not less than two days after receiving it from the Bank of Industry (BOI), which is the managing agent.
However, the CBN did not specify any sanction against contravention of these provisions, hence banks participating in the Fund circumvented the guideline. Last year November, the regulatory body revised the guidelines for the Fund, introducing sanctions to curb the excesses of banks in the administration of PAIF.
The CBN Governor, Mallam Sanusi Lamido Sanusi had noted that the Fund was also to provide leverage for additional private sector investments in the power sector and fast-track the development of electric power projects, especially in the identified industrial clusters in the country.
'The power sector component of the Fund in particular affects the efficiency, productivity and profitability of SMEs. This is to improve power supply, generate employment and enhance the living standard of the citizen, through consistent power supply', he said.