Nigeria’s Central Bank on Tuesday said it has set up a 300 billion naira (1.6 billion euro, 2.0 billion dollar) fund to assist private investments in the power and aviation sectors.
“The purpose of the fund is to help sustain private sector investment in the two sectors,” the Central Bank of Nigeria (CBN) said in a statement.
The amount is part of an initial 500 billion naira Power and Aviation intervention fund announced in April “in a bid to catalyze financing of the real sector of the Nigerian economy,” it said.
The Central Bank added that the fund supports President Goodluck Jonathan’s ongoing initiatives in the two sectors.
Earlier this month, Jonathan pledged a 3.5-billion-dollar electricity grid for Nigeria, but gave few details on how the pre-election promise would be paid for. Elections are set for January in Nigeria.
Jonathan has made improved access to power a key goal in a country where electricity outages are a daily occurrence despite its huge oil resources. The government also wants to privatise parts of the power generation chain.
The country is meanwhile undertaking efforts to improve its aviation sector, which Aviation Minister Fidelia Njeze described on Monday in Abuja as “a catalyst to economic growth.”
The new fund will be managed by the Bank of Industry, with African Finance Corporation serving as its technical adviser.
Companies wishing to participate must be duly registered and involved in electricity power generation, transmission, distribution and associated services, the statement said.
Any duly incorporated airline operating in Nigeria is also eligible to apply for seven percent loans from the funds.