06 June 2014, Abuja – The Central Bank of Nigeria, CBN, said it has so far disbursed N233.65 billion, representing 77.88 per cent of the Power and Aviation Intervention Fund, PAIF, at the end of last year.
The level of disbursement, the CBN said, also shows that in 2013, disbursement rose by N52.65 billion or 29.08 per cent from the N181 billion disbursed at the end of 2012, an improvement over the 23 per cent increase in 2012.
A breakdown of the 2013-end disbursement showed that while N116.92 billion or 50.04 per cent went to 36 projects in the aviation industry, while the power sector got N115.73 billion for 51 projects.
A further breakdown put total repayments of the fund disbursed through the Bank of Industry (BoI), so far at N32.363 billion or a paltry 13.85 per cent of the amount.
While there were 10 obligors in the airlines’ sector, there were 24 in the power sector.
The CBN also put the unutilized portion of the fund at N62.77 billion or 20.92 per cent
Objectives of the fund, included refinancing of commercial banks’ exposures to companies in both sectors and helping to establish new power plants especially in clusters, while providing leverage for additional private sector investments.
The intervention also improved liquidity and balance sheet of banks from pre-intervention level of non-performing loans. This is besides ensuring average cost savings on interest expense for benefiting projects.
Beneficiaries have also been able to increase their investment in other assets or expand their revenue base as a result of the lower debt obligations.
*Kingsley Ighomwenghian-Daily independent