Nigeria: Proposed bail-out of domestic airlines
Description
The Central Bank of Nigeria (CBN) as part of the N500 billion power and real sector fund has provided a bail-out to domestic airlines in the country. Domestic airline companies can take loans which are to be refinanced over a period of 10 (ten) to 15 (fifteen) years. The decision to bail-out the sector is due to the fact that the airline firms are heavily indebted to banks in the country. In 2009, five banks in the country were given a bail-out.
The N500billion fund was initially to stimulate credit to the power and manufacturing sectors in the country.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 31/05/2010
Implemented: Yes
Date of inception: 30 May 2010
GTA Evaluation: Red
Source:
Central Bank of Nigeria. Press Release: CBN extends N500BN Power and Real Sector fund to Aviation Industry.' 30 May 2010. http://www.cenbank.org/Out/2010/pressrelease/gov/PRESS%20RELEASE%20ON%20...
Central Bank of Nigeria. 'Guidelines on N200BN Fund for Re-financing and Restructuring of Banks' loans to the manufacturing sector.' http://www.cenbank.org/out/2010/circulars/dfd/GUIDELINES%20ON%20N200%20B...
Government Response:
- 374 reads
