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CBN resumes power sector intervention, disburses N55b to operators


Mr Babatunde Fashola, Minister of Power, Works and Housing.

Mr Babatunde Fashola, Minister of Power, Works and Housing.

…Fashola Seeks Good Use Of Funds, Warns Against Vandalism

A fresh lifeline has come the way of electricity Distribution Companies (Discos), Generation Companies (Gencos) and gas providers, as the Central Bank of Nigeria (CBN) yesterday disbursed N55.46 billion fourth tranche of the Nigerian Electricity Market Stabilisation Facility (NEMSF).

Besides, the event also coincided with the PPA Activation Agreement by NBET to signal activation of industry contracts for power generation under a contract-based market.

The development marked the resumption of the development financing scheme by CBN, which was suspended as a result of costs and pricing issues among Discos, Gencos and gas providers.

CBN Governor, Mr. Godwin Emefiele, said this fourth disbursement marks a major milestone in the effort of the bank, in collaboration with the federal government, to achieve a contact-based electricity market in the country.

The CBN had in 2014 initiated a N213billion NEMSF as part of its development financing and a follow up to commitments it reached with other stakeholders, particularly the Bankers Committee, to address debts owed by generating companies to gas suppliers.

Meanwhile, Minister of Power, Works and Housing, Mr. Babatunde Fashola, appealled to the recipients to ensure effective utilisation of the funds, warning that it is not a “distribution of national wealth,” but intervention that would be repaid in 10 years.

He noted that vandalisation oil pipelines has not helped government, but worse for the communities where such sabotage continues to increase pollution level and impacting negatively on government revenues.

He commended the long-standing and renewed collaboration among government agencies in search for solution to power problem, reminding the Discos, Gencos and gas providers that they are dependent on one another and cooperate among themselves.

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