Guidelines For National Gas Expansion Programme Final
Guidelines For National Gas Expansion Programme Final
Guidelines For National Gas Expansion Programme Final
August 2020
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CENTRAL BANK OF NIGERIA
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. With proven gas reserves of 188 trillion
cubic feet (tcf) of gas, the natural gas industry presents an opportunity to
diversify the economy through domestic commercial utilisation of its natural
gas. Historical non-viability of domestic commercial production and utilisation
of gas continues to severely constrain private investments in the industry.
Consequently, the low level of investment in the industry has resulted in the
minimal production and utilization of Compressed Natural Gas (CNG) and
Liquefied Petroleum Gas (LPG) as clean alternative sources of domestic
energy in Nigeria. Failure to harness its gas resources has had negative
consequences for the country – economic, environmental, fiscal and social,
particularly as the industry has the potential to engender rapid growth in
Nigeria’s non-oil economy.
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fuel of choice for domestic cooking, captive power and small industrial
complexes. Equally, gas-based industries, most especially the
petrochemical (fertilizer, methanol, etc) are to be enabled to support large
industries, such as agriculture, industrial applications, textile and so on.
2. Objectives
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iii. Fast-track the adoption of CNG as the fuel of choice for
transportation and power generation, as well as LPG as the fuel of
choice for domestic cooking, transportation and captive power;
iv. Fact-track the development of gas-based industries particularly
petrochemical (fertilizer, methanol, etc) to support large industries,
such as agriculture, textile, and related industries;
v. Provide leverage for additional private sector investments in the
domestic gas market;
vi. Boost employment across the country.
3. Eligible Activities
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ix. Establishment/expansion of micro distribution outlets and service
centres for LPG sales, domestic cylinder injection and exchange;
and
x. Any other mid to downstream gas value chain related activity
recommended by the Ministry of Petroleum Resources (MPR).
4. Funding
i. Term loan: Shall be determined based on the activity and shall not
exceed N10 billion per obligor.
ii. Working capital: Maximum of N500 million per obligor
5.1 Small & Medium Enterprises (SMEs) and Retail Distributors
i. Term loan: Shall be determined based on the activity and shall not
exceed N50 million per obligor.
ii. Working capital: Maximum of N5 million per obligor.
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6. Interest Rate
Interest rate under the intervention shall be at not more than 5.0% p.a. (all
inclusive) up to 28th February 2021, thereafter, interest on the facility shall
revert to 9% p.a. (all inclusive) effective from 1st March 2021.
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8. Repayment
8.2 NMFB: Monthly interests on the facility shall be paid monthly after the
moratorium period.
All Deposit Money Banks and the NMFB will be eligible as PBs under this
Facility.
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that meet the specified requirements under the intervention shall be
processed and the PB notified of the status of the request.
(Note: The CBN reserves the right to reject any application from any
lending bank that does not meet the requirements of this Guidelines);
vi. Upon approval, the CBN shall release the approved sum to the PB
according to mutually agreed disbursement schedule tied to specific
milestones; and
vii. The PB shall, within 5 working days, disburse the approved sum to the
enterprise.
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11. Collateral Requirements
11.2 The collateral acceptable for SMEs will be as determined by the NMFB.
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v. Ensure compliance with the provisions of the Guidelines; and
vi. Review the Guidelines as may be necessary from time to time.
14.4 Beneficiaries
Beneficiaries shall:
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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.
16. Infractions
17. Amendments
August 2020
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