The Central Bank of Nigeria released a total of N38.53bn to power firms between January and June this year under the Nigeria Electricity Market Stabilisation Facility, a new report by the apex bank has said.
The facility was set up by the CBN in 2015 to provide liquidity for the Nigerian electricity supply industry and put it on the path to economic viability and sustainability.
The market participants are gas companies, electricity generation companies, the Transmission Company of Nigeria, and electricity distribution companies as well as service providers.
The CBN in the economic report said that the N38.53bn was disbursed to one distribution company, 17 generation companies, six gas companies and five service providers.
It said cumulatively, as of the end of June this year, about N158.74bn had been disbursed to the Nigeria Electricity Supply Industry Stabilisation Strategy Limited to refinance 37 eligible electricity market participants.
It added that the sum of N4.99bn being the principal repayment was received in the period under review, bringing the total repayment since inception to N20.56bn.
The report read in part, “In the first half of 2018, the sum of N38.53bn was disbursed to one distribution company, seventeen 17 generation companies, six gas companies and five service providers.
“Cumulatively, N158.74bn at end-June 2018 had been disbursed to the (NESISS Ltd to refinance 37 eligible electricity market participants.”
With the intervention, the bank is able to facilitate the recovery of 1,193 megawatts of generating capacity through the overhaul of 10 turbines as well as acquisition of one mobile injection substation.
The capacity recovery programmes were carried out in three hydro power stations while 10 gas turbines at major thermal power plants including Geregu, Transcorp Ughelli and Ibom power plants, were rehabilitated.
The CBN Governor, Mr Godwin Emefiele, had while speaking during the commencement of the facility urged the firms to utilise the funds in upgrading their power infrastructure.
He said the Gencos and Discos would not only be the beneficiaries of the loan, other gas suppliers in the electricity market would also benefit from the funds.
“We want to unlock the potential of the power sector and so this facility is meant to catalyse the power sector. The funds will be used to procure meters, and certain spares that they need to improve their business and power losses in the grid,” he added.
Authored By: Ifeanyi Onuba