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CBN Disburses N114.74bn to 29 Power Firms

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Godwin Emefiele CBN - Investors King
  • CBN Disburses N114.74bn to 29 Power Firms

The Central Bank of Nigeria has disbursed a sum of N114.74bn to 29 power firms under its Nigerian Electricity Market Stabilisation Facility.

The amount is contained in the Financial Stability Report of the apex bank, which was obtained on Friday by our correspondent in Abuja.

The report stated that while N114.7bn was provided to the power firms as loans, a total of N6.26bn had been repaid leaving an outstanding debt of N106.64bn.

The N213bn NEMSF, which was established in 2015, is being provided as loans to operators in the power sector at an interest rate of 10 per cent.

Some of the areas where the funds are to be invested are plant maintenance, upgrade LG transmission and distribution networks, acquisition of transformers and effective metering to consumers.

A breakdown of the disbursements showed that the sum of N49.62bn was provided to seven power distribution companies, while N49.06bn was given to 15 power generation companies.

In the same vein, the sum of N15.6bn was provided to fund the operation of six gas companies while N460m was given to one service provider in the power sector.

It said, “Total disbursement of funds from inception stood at N114.74bn to 29 eligible electricity market participants. The sum of N4.11bn was repaid by eight distribution companies bringing the cumulative total repayment to N6.26bn.”

The CBN said through the intervention, the bank had been 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 sub-station.

Others are acquisition of 414,000 meters and 70,310 units of 500KVA transformers by distribution companies; rehabilitation of 332km of 11KV lines and 130km of 0.45KV lines; procurement and construction of 34 new distribution sub-stations.

The report added that 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 had said the Gencos and Discos would not only be the beneficiaries of the loans, 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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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