Nigeria ready to release $2 billion for power, aviation
Nigeria’s central
bank said on Wednesday it was ready to release 300 billion naira ($2
billion) from a fund set aside to stimulate credit to the domestic
power sector and the troubled airline industry.
The central bank
announced several months ago it was establishing the fund to help
finance badly needed power projects and to allow banks to refinance
loans to the heavily-indebted airline industry.
The move is part of
efforts to stimulate lending and boost growth in sub-Saharan Africa’s
second biggest economy in the wake of a $4 billion bailout of the
banking sector last year, which has left banks reluctant to lend.
President Goodluck Jonathan has made improving Nigeria’s electricity
supply one of his main priorities and has announced plans to privatise
electricity generation and distribution next year.
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