CBN Releases N38.53 Billion to NEMSF Power firms In Six Months

• CBN Releases N38.53 Billion to NEMSF Power firms In Six Months

The Central Bank of Nigeria (CBN), in an economic report, has made known that a sum of N38.53 billion has been disbursed to one distribution company, 17 generation companies, six gas companies and five service providers, under the Nigeria Electricity Market Stabilization Facility (NEMSF).

The CBN managed NEMSF was instituted in 2015, following the initiation of the Nigerian Bankers committee in 2014.

The CBN-NEMSF is aimed to put the Nigerian electricity supply industry on the path of viability and sustainability by providing liquidity for the industry.

Again, the NEMSF is aimed to ensure the settlement of revenue shortfalls in the power sector and legacy gas debt obligations.

“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”. The report read in part.

As a result of the funding, 10 turbines, producing 1,193 megawatts of generating capacity, a mobile injection substation, 414,000 meters and 70,310 units of  500KVA transformers have been acquired; also included, were the rehabilitation of power projects.

Earlier, Mr Godwin Emefiele, the Central Bank Governor, while speaking at the commencement of the NEMSF, counselled the firms to upgrade their power infrastructure with the fund.

“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”. The CBN Governor said.

The Minister of Power, Works and Housing, Babatunde Raji Fashola, who earlier spoke at the CBN-NEMSF disbursement ceremony in Lagos, May 2018, mentioned that the money is not a gifting to the firms, but meant to be repaid within a 10-year period.

“This money is not free money, as popularly insinuated, it is not a dash-out, they would repay within a 10 year period”, Fashola made known.