CBN sus­pends N213bn loan to Dis­cos, Gen­cos

Daily Trust - - FRONT PAGE - From Hamisu Muham­mad, Lima, Peru

The Cen­tral Bank of Nige­ria has sus­pended un­til fur­ther no­tice its dis­burse­ment of N213 bil­lion in bailout funds to the elec­tric­ity gen­er­a­tion com­pa­nies (Gen­cos) and dis­tri­bu­tion com­pa­nies (Dis­cos).

The Gover­nor of the Cen­tral Bank of Nige­ria (CBN) said this yesterday in Lima, Peru, while ad­dress­ing news­men on the gen­eral is­sues af­fect­ing the Nige­rian econ­omy.

“Not all funds have been dis­bursed to the elec­tric­ity com­pa­nies be­cause of the is­sues we need to trash out with the Nige­ria Elec­tric­ity Reg­u­la­tory Com­mis­sion (NERC) and the Nige­ria Bulk Elec­tric­ity Com­mis­sion (NBEC),” he told jour­nal­ists.

Ac­cord­ing to the Gover­nor, the bailout fund, which was meant for the up­grade of elec­tric­ity equip­ment and re­place­ment, has been of great help for ben­e­fi­cia­ries but some things needed to be re­solved be­fore the bank con­tin­ues to re­lease the funds.

About N58bn out of the to­tal N213bn has so far been dis­bursed to some Dis­cos and Gen­cos. The loan has a re­pay­ment spread of 10 years, at 10 per cent in­ter­est rate.

The Gover­nor also said more in­ter­ven­tion is likely in the trans­mis­sion net­work to com­ple­ment the gen­er­a­tion ef­fort of the elec­tric­ity com­pa­nies.

“We have seen some im­prove­ment in the power gen­er­a­tion and it is also true that the wheel­ing ca­pac­ity of the trans­mis­sion grid is also lim­ited. I am also aware that we have been in dis­cus­sion with gov­ern­ment about the ef­fort that is be­ing made to im­prove the trans­mis­sion grid.

“The Dis­cos are meant to use the money to buy me­ters and trans­form­ers in or­der to im­prove their ca­pac­ity, while the Gen­cos will ac­quire equip­ment to re­place some of their ob­so­lete ones so that they can also im­prove on their ca­pac­ity. We have started to see im­prove­ment on that. We be­lieve that by the time the re­main­ing funds are dis­bursed, we will wit­ness more progress.” the CBN chief said.

The first ben­e­fi­cia­ries of the spe­cial CBN power sec­tor in­ter­ven­tion fa­cil­ity in­cluded the Eko Elec­tric­ity Dis­tri­bu­tion Com­pany Plc and Ibadan Elec­tric­ity Dis­tri­bu­tion Com­pany Plc, which re­ceived cheques val­ued at N5.16bn and N11.36bn re­spec­tively.

Oth­ers are the Jebba Hy­dro­elec­tric Plc, Kainji Hy­dro­elec­tric Plc and Shi­roro Hy­dro­elec­tric Plc, which also re­ceived the sums of N816.83m, N234.81m and N678.650m re­spec­tively, to­talling N18.26bn.

Six more com­pa­nies ben­e­fited from the sec­ond round of the dis­burse­ment in var­i­ous sums. They were the Enugu, Ibadan and Kano Elec­tric­ity dis­tri­bu­tion com­pa­nies, as well as the Ughelli, Eg­bin and Geregu Elec­tric­ity gen­er­a­tion com­pa­nies. The to­tal for the sec­ond batch was N39.53bn.

Mr God­win Eme­fiele CBN Gover­nor

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