- Power Sector: FG Signed Another N600bn Intervention Fund
The Federal Government has signed another N600 billion intervention fund for the unstable money consuming power sector.
President Muhammadu Buhari signed the document for the disbursement of the fund on Wednesday in Abuja, according to Edmond Eje, the Market Operator, Transmission Company of Nigeria.
Eje, who spoke on the sidelines of the third Market Operator interactive stakeholders’ forum, said the plan to inject more capital into the sector after over N700 billion is at an advanced stage.
“The plan is at an advanced level and the fund has been signed by Mr President. The President signed for the release of the intervention and it is an intervention of N600bn,” he said.
The Federal Government injected N213 billion into the privatised power companies in 2014.
In 2017, another N701 billion was provided through the Power Assurance Guarantee for the Nigeria Bulk Electricity Trading Company.
When Mr Eje was reminded of the previous funds injected into the sector at various intervals without result.
He said, “At this stage I’ll tell you that it is for the market. If the money is injected into the Gencos, it is for the market; if it is injected into the Discos, it is for the market. It is generally for the shortfall in the payment of monthly invoices.”
Speaking on when the N600 billion will be officially released, He said: “I think the government is not happy that it has not taken effect. But you know when government signs such a thing, there are underlying protocols that must be observed in order to facilitate it and that is what is going on right now.
Meanwhile, the Federal Government has perfected plans to increase tariff on power consumption by 2019.