The Central Bank of Nigeria (CBN) has disbursed a total sum of N18.26 Billion to the first batch of beneficiaries of the N 213 Billion Nigeria Electricity Market Stabilization Facility (NEMSF). This comprises two electricity Distribution Companies (DISCOs) and three electricity Generation Companies (GENCOs).
In his welcome remarks at the ceremony held at the Bank’s Head office in Abuja, on Monday, February 2, 2015, the CBN Governor, Mr. Godwin Emefiele, CON, reiterated that the N 213 Billion Nigeria Electricity Market Stabilization 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.
He explained 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 congratulating the first batch of beneficiaries, which he said had met the conditions precedent to disbursement, Mr. Emefiele urged the beneficiaries to ensure that the funds are repaid as and when due, just as he stressed the need for them to ensure that all inputs into the generation of power are ramped up in a consistent manner. He equally charged 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.
In his remarks at the ceremony, the Minister of Power, Professor Chinedu Nebo, expressed gladness at the disbursement, describing the event as a prayer answered and a dream come true.
Prof. Nebo commended the CBN Governor for the key role he played in ensuring the success of the inter-ministerial/agency collaboration, which involved the Ministry of Petroleum Resources, Ministry of Power, the Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE).
