Governor of Central Bank of Nigeria (CBN), Godwin Emefiele who gave the hint said the arrangement would ensure the efficient deployment of resources and best judgment in business and investment decisions.
He disclosed this at a national capacity building and sensitisation workshop on biofuels organised the Petroleum Products Pricing Regulatory Agency (PPPRA) in collaboration with the Ministry of Petroleum Resources in Abuja.
The CBN governor who was represented by deputy director, research, Mr. Lawrence Odeh, stated that a new policy on biofuels being drafted has outlined a range of funding arrangements and incentive packages for firms involved in biofuel production.
Speaking on the funding structure designed to ensure the growth of the sector, he said, “The document envisages an equity funding arrangement to be known as Biofuels Industry Equity Fund (BIEF) of US$50.0 billion that would be jointly funded by parastatals and development banks including the Bank of Industry (BOI), Bank of Agriculture (BOA) and Development Bank of Nigeria (DBN). When established, the Fund is expected to provide credit on favourable terms to meet the peculiar needs of the industry in Nigeria.”
The draft policy, according to him, also recognises the international dimension to biofuel funding and has provided for the relevant ministries, departments and agencies (MDAs) to engage with development finance institutions, international development partners (both multilateral and bilateral) for equity funding of biofuels projects.
“As part of this provision, ministry of Environment is mandated to explore funding opportunities in the Kyoto Protocol Adaptation Fund, Green Climate Fund, etc. for financing the sector,” he added.
On his part, the acting executive secretary (PPPRA), Mr. Victor Shidok, said the agency organised the workshop to bring to the notice of Nigerians, the bold policy initiatives of government being designed for a more productive energy mix, consistent with global trends and expected to assist in the nation’s industrial development and growth.
While urging Nigerians to buy into the economic diversification initiative, he stated that his agency was aware of the immense socio-economic benefits derivable from domestic production of biofuels.
“We dare say that the expected increase in agricultural activities is bound to translate to enormous job creation, and by extension contribute to the nation’s gross domestic products (GDP) growth,” Shidok added.