Some Electricity Distribution Companies (DisCos) have received ₦3.01 billion from the Central Bank of Nigeria (CBN) as part of its intervention in the electricity sector.
The ₦3.01 billion intervention comes under the Nigerian Electricity Market Stabilisation Facility(NEMSF-2) for the capital and operational expenditure of Electricity Distribution Companies(DisCos).
The CBN governor, Godwin Emefiele, talked about this intervention in Abuja.
He explained that the facility was aimed at improving the liquidity status of the DisCos and aiding their recovery of legacy debt.
“This brings the cumulative disbursement under the facility to ₦254.39 billion,” he added
The CBN has, however, disbursed ₦18.26 billion to the first batch of beneficiaries of the ₦213 billion Nigeria Electricity Market Stabilisation Facility (NEMSF).
This comprises of two electricity Distribution Companies (DISCOs) and three electricity Generation Companies (GENCOs).
On February 2, 2015, Emefiele, reiterated that the ₦213 Billion Nigeria Electricity Market Stabilisation Facility (NEMSF) was a way of kick-starting the electricity market in order to ensure that the sector delivers tangible improvement in power supply for all Nigerians.
Repay As And When Due
He further enunciated that the CBN, in collaboration with the banking sector, offered to provide the facility to address recent shortfalls in power sector revenues caused by needed adjustments in the electricity tariff and legacy gas debts.
While he congratulated the first batch of beneficiaries, which he said, had met the conditions precedent to disbursement, Emefiele urged the beneficiaries to ensure that the funds are repaid as and when due.
Also, he stressed the need for them to ensure that all inputs into the generation of power are ramped up in a consistent manner.
Equally, he advised them to invest the funds in the necessary improvements in generation plant maintenance, transmission upgrades, and distribution networks, including transformers and better metering for end consumers.
Furthermore, he urged other Distribution and Generation Companies to take a cue from the first batch of beneficiaries so as to receive their respective tranches of the facility as soon as possible.
