Godwin Emefiele

Central Bank of Nigeria Comes to Fashola’s Rescue Over Power Supply…Details

Central Bank of Nigeria has disbursed money to the power sector for the purpose of putting infrastructural facilities in place for better service delivery.

Godwin Emefiele
As part of efforts to address the worsening power situation in the country, the Central Bank of Nigeria (CBN) yesterday disbursed a total of N55,456,161,481 from its Nigerian Electricity Market Stabilisation Facility (NEMSF) to firms in the power.
A breakdown of the amount showed that while all the distribution companies got N8,670,234,863.76; the generating companies – N35,834,536,939; gas suppliers N10,491,710,788.66; all the service providers in the power value chain were given a total of N459,678,889.55.

The amount was the fourth batch from the N213 billion stabilisation that was designed by the central bank as part of development finance intervention in the economy.

Speaking during the signing of the agreement for the disbursement of the fund and presentation of cheques to the power sector investors in Lagos, CBN Governor, Mr. Godwin Emefiele, said the fourth batch disbursement marked a major milestone in the effort of the Bank in collaboration with the federal government to achieve a contract based electricity market.
This, according to him would activate Power Purchase Agreements (PPA) by the Nigerian Bulk Electricity Traders (NBET) and signal activation of industry contracts for power generation.

Emefiele added: “By the end of today, total disbursements to the Discos will be N49.73 billion (91.7%); gencos N54.29 billion (62.5%), gas companies N15.73 billion (36.9%) and service providers N0.46 billion (1.7%). With today’s event, the total disbursements under the initiative will be N120.2 billion, representing (57%) of the total amount earmarked.”

He explained that the CBN-NEMSF was initiated as part of the commitment it reached with stakeholders to address debts owed by generating companies to gas suppliers.
The first disbursement was effected on February 12, 2015 to industry participants.
One year into the programme, the sum of N64billion or 30 per cent of the facility was disbursed to 18 participants.
The companies committed to using the funds to upgrade/refurbish their equipment and acquire new ones so as to improve service delivery. The facility was given at 10 per cent interest rate and repayment has commenced.
Meanwhile, the Minister of Power, Works and Housing, Babatunde Raji Fashola has blamed the current power problem on the activities of the Niger Delta Avengers blowing up oil facilities which is affecting the supply of gas.
Source: ThisDay Newspaper

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