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Power and Airline Intervention Facility(PAIF)

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Overview

The N300 billion Power and Airlines was established in 2010. The Managing Agent of the facility is the Bank of Industry, while the Technical Adviser is Africa Finance Corporation (AFC).


Objectives

The Objectives include:

  1. Fast-track the development of electric power projects, especially in the identified industrial clusters in the country;
  2. Fast-track the development of the aviation sector of the Nigerian economy by improving the terms of credit to Airlines;
  3. Serve as a credit enhancement instrument to improve the financial position of the Deposit Money Banks (DMBs);
  4. Improve power supply, generate employment, and enhance the living standard of the citizens through consistent power supply;
  5. Provide advantage for additional private sector investments in the power and aviation sectors.

How to apply

To access the facility, the project promoter has to identify a Deposit Money Bank that is willing to access the facility on its behalf for the project. The Deposit Money Bank would thereafter forward the request to the Bank of Industry (BOI) for processing which will in turn forward the request to Africa Finance Corporation (Technical Adviser to the Fund) for appraisal.

Frequently Asked Questions

S/No Questions Responses
1 What is PAIF? Power and Airlines Intervention Fund
2 When was the initiative established? March, 2010
3 What were the major reasons for the establishment of the fund?
  • Provision of long term credit facilities to airlines and power projects
  • Leverage private sector investments in power and aviation sectors
  • power supply in the country
  • track the development of the aviation sector
4 Who is the managing agent of the Fund? Bank of Industry
5 Who is the technical adviser to the Fund Africa Finance Corporation
6 Who are the participating financial Institutions
  • All Deposit Money Banks and Development Finance Institutions except Bank of Industry
  • Asset Management Corporation
7 Who is eligible to apply under the Scheme?
    For Power
  • The company has to be registered in Nigeria and involved in the electricity value chain
    • For Airlines
  • The Airline must be incorporated under the Companies and Allied Matters Act of 1990 and operating in Nigeria
8 What are the types of the facilities to be financed under the Scheme?
  • Long term loans (for new power projects)
  • Refinancing of existing loans (Power and Airline Projects
  • Refinancing of existing leases (Power and Airline Projects
  • Working capital (for existing Power and Airline Projects only)
  • Refinancing of Aircraft Hangar project that can service existing commercial jets and next generation aircraft for “ C ” and “D ” checks in Nigeria
9 What is the tenor of the facility?
  • The Term loan has a maximum tenor of 15 years, but not exceeding July 31, 2025
  • The working capital component has a tenor of one year, with a provision for roll-over but not more than 5 years
10 What is the interest rate An “ all-in ” interest rate of not more than 5% per annum, to revert to 9% by March 1,2022
11 What is the maximum amount that could be assessed under the PAIF?
  • For airlines and hangar projects, refinancing could be up to 100% of the total project cost
  • For power projects, up to 70% of the total project cost
12 What is the collateral acceptable by the CBN for assessing the facility Submission of Irrevocable Standing Payment Order (ISPO) from the Sponsoring Bank

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