CBN Releases Additional N55.5billion to Boost Power Supply 

The Central Bank of Nigeria, CBN, has disbursed an additional N55.5 billion as part of the Nigerian Electricity Market Stabilization Facility, CBN-NEMSF, targeted at boosting power supply in the nation and offsetting legacy gas debt.

The CBN Governor, Godwin Emefiele, and the Minister of Power, Works and Housing, Babatunde Raji Fashola, conducted the disbursement ceremony on Sunday, May 22, in Lagos.

It would be recalled that following the initiation of the Nigerian Bankers committee in 2014, CBN Instituted the N213billion Nigerian Electricity Market Stabilization Facility (CBN-NEMSF) with the first disbursement effected on February 12, 2015 to industry participants.

The disbursement brings to N120 billon or 57 per cent, the total amount so far disbursed to 24 industry participants (3 Discos; 14 Gencos- NIPP inclusive; 1- Service Provider; and 6- Gascos).

New entrants into the scheme are two Distribution companies (Benin and Jos) and eight generating companies that include two IPPs (Agip/Okpai and Shell) and six NIPP plants (Alaoji, Geregu, Ihovbor, Olorunsogo2, Omotosho2 and Sapele2).

The 4th batch disbursement featured signing of Power Purchase Agreement (PPA) Activation Agreement by NBET to signal activation of industry contracts for power generation under a contract based market.

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%).

Fashola who spoke at the event, said: “This money is not free money, as popularly insinuated, it is not a dash-out, they would repay within a 10 year period.

“We are discussing with the CBN on the modalities we will adopt to settle all the huge debts of the ministries, departments and agencies of government.”