Expectations of consumers, analysts and other stakeholders are high on power generation as the Central Bank of Nigeria (CBN), weekend, disbursed N55.45 billion to 24 industry participants, being the fourth tranche from the N213 billion of Nigerian Electricity Market Stabilisation Facility (CBN-NEMSF).
Analysts said the development would enhance the power generation and create employment in the country.
“The disbursement of concessionary CBN fund to the power sector is a confirmation of the commitment of government to support the ailing sector of the economy to carry out its mandate. There is no doubt that the bridging of the funding gap would enhance the power supply in the country,” Agbola Bolade, executive director, Cash Craft Asset Management, said in an emailed response.
The breakdown of the disbursement include three distribution companies (Discos) receiving N8.67 billion, 14 generation companies (Gencos) – N35.83 billion, six gas suppliers (Gascos) – N10.49 billion and service providers N459.67 million.
With the latest disbursement, total disbursements to the Discos stood at 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%). The total disbursement under the initiative is N120.2 billion, representing 57 percent of the total amount earmarked.
Godwin Emefiele, governor of CBN, who spoke at the official signing ceremony in Lagos, said the intervention had also enabled the Discos to provide bank guarantees to Nigerian Electricity Bulk Trader (NEBT), purchase of over 171,071 units of meters comprising both maximum demand and single-phase meters.
For instance, Kano Electricity Distribution Company (KEDC) alone acquired 62,021energy meters with the facility within the period. Rehabilitation of over 332kms of 11KV lines and 130km of 0.45KV lines; 70,310 No 500 KVA transformers procurement and construction of 34 new distribution substations and acquisition of one mobile injection substation under confirmed permitted utilisation by the initiative.
Emefiele encouraged the beneficiaries on the proper utilisation of the fund, and told the Discos to buy meter and ensure that power was distributed to retailers and the Gencos to buy equipment so that the system could run well.
Speaking at the event, Babatunde Fashola, minister of power, works and housing, said: “There are still debts to be paid. The governor and I are talking and other agencies of government about how to repay the debt owe by the MDs and soon and rather than later I will provide a mechanism to ensure that all those debt are paid and gives stability to entire value chain.”
Fashola, who noted one of the problems in the financial stability, also said that his ministry was working out a framework that would enable solar developers come quickly to the market.
“Some of these problems can be solved as long as we remain methodical in our approach. One of the problems is gas. Some people have developed a mindset of vandalising gas pipelines. It does not help this country, the community and people. Breaking out pipelines increases pollution,” he said in Lagos.
Analysts said the development would enhance the power generation and create employment in the country.
“The disbursement of concessionary CBN fund to the power sector is a confirmation of the commitment of government to support the ailing sector of the economy to carry out its mandate. There is no doubt that the bridging of the funding gap would enhance the power supply in the country,” Agbola Bolade, executive director, Cash Craft Asset Management, said in an emailed response.
The breakdown of the disbursement include three distribution companies (Discos) receiving N8.67 billion, 14 generation companies (Gencos) – N35.83 billion, six gas suppliers (Gascos) – N10.49 billion and service providers N459.67 million.
With the latest disbursement, total disbursements to the Discos stood at 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%). The total disbursement under the initiative is N120.2 billion, representing 57 percent of the total amount earmarked.
Godwin Emefiele, governor of CBN, who spoke at the official signing ceremony in Lagos, said the intervention had also enabled the Discos to provide bank guarantees to Nigerian Electricity Bulk Trader (NEBT), purchase of over 171,071 units of meters comprising both maximum demand and single-phase meters.
For instance, Kano Electricity Distribution Company (KEDC) alone acquired 62,021energy meters with the facility within the period. Rehabilitation of over 332kms of 11KV lines and 130km of 0.45KV lines; 70,310 No 500 KVA transformers procurement and construction of 34 new distribution substations and acquisition of one mobile injection substation under confirmed permitted utilisation by the initiative.
Emefiele encouraged the beneficiaries on the proper utilisation of the fund, and told the Discos to buy meter and ensure that power was distributed to retailers and the Gencos to buy equipment so that the system could run well.
Speaking at the event, Babatunde Fashola, minister of power, works and housing, said: “There are still debts to be paid. The governor and I are talking and other agencies of government about how to repay the debt owe by the MDs and soon and rather than later I will provide a mechanism to ensure that all those debt are paid and gives stability to entire value chain.”
Fashola, who noted one of the problems in the financial stability, also said that his ministry was working out a framework that would enable solar developers come quickly to the market.
“Some of these problems can be solved as long as we remain methodical in our approach. One of the problems is gas. Some people have developed a mindset of vandalising gas pipelines. It does not help this country, the community and people. Breaking out pipelines increases pollution,” he said in Lagos.
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