Nigeria's Power Industry Bailout Heads Off Threat to Lenders

Goodluck Jonathan, President of Nigeria

Nigeria has headed off a threat to its banking industry by propping up struggling power companies with an intervention fund, said analysts including Pabina Yinkere of Vetiva Capital Management Ltd.

The 213 billion-naira ($1.3 billion) fund announced by President Goodluck Jonathan’s administration on Sept. 19 will be used to pay off gas-supply debts owed by power companies and to cover revenue shortfalls. It will also help them meet debt-service obligations to banks on loans of almost 500 billion naira, on which some were falling behind.

Read more: Nigeria’s Power-Industry Bailout Heads Off Threat to Lenders – Businessweek.