HOW TO ACCESS THE CENTRAL BANK OF NIGERIA (CBN) 250 BILLION NAIRA GAS INTERVENTION FUND

Nigeria is richly endowed with both energy resources, such as coal, tar sand, crude oil, petroleum and other derivatives of crude oil, natural gas, and various gas liquids and condensates. To this end, the National Gas Expansion Programme (NGEP) was introduced to make CNG the fuel of choice for transportation and LPG, the fuel of choice for domestic cooking, captive power and small industrial complexes. Therefore, as part of its efforts at stimulating finance to critical sectors of the economy, the Central Bank of Nigeria (CBN) introduces the N250 billion intervention facility to help stimulate investment in the gas value chain.

The Central Bank of Nigeria shall:
i. Provide the funding for the intervention facility;
ii. Release funds to the DMBs and NMFB for disbursement to approved financing requests;
iii. Carry out periodic verification and monitoring of projects financed;
iv. Provide periodic reports to the CBN Management on the performance of the intervention.

v. Ensure compliance with the provisions of the Guidelines; and
vi. Review the Guidelines as may be necessary from time to time.

Credible entities can now have access to the CBN Gas Intervention Fund under the following terms:

1. For manufacturers, processors, wholesale distributors, the term loan, “Shall be determined based on the activity and shall not exceed N10 billion per obligor, Working capital is maximum of N500m per obligor.”
2. Approvals must be obtained from the Ministry of Petroleum for Companies to proceed with loan applications
3. Annual interest rates of 5% will apply for loans successfully approved
4. Loans must be deployed into gas infrastructural development or working capital (not exceeding 500 million Naira) for gas development
5. Maximum loan amount is 10 Billion Naira for established gas companies and 50 million Naira for Small and Medium Enterprises 
6. A two year grace period (moratorium) will apply for all loans disbursed.

Beneficiaries shall:
i. Adhere strictly to the terms and conditions of the Facility
ii. Ensure prudent utilisation of facility for the purpose for which it was granted
iii. Keep up-to-date records of the enterprise’s activities under the intervention
iv. Allow access to the project and records by the CBN and PB;
v. Repay the facility in accordance with the approved repayment schedule; and
vi. Comply with the provisions of the Guidelines.

All enquiries and returns should be addressed to:
The Director,
Development Finance Department,
Central Bank of Nigeria, Corporate Headquarters
Central Business District, Abuja.

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