CBN directs banks to collect revenue for electricity

The Central Bank of Nigeria (CBN) has issued guidelines to banks on revenue collections for electricity companies.

In a letter to all banks and signed by Bello Hassan, Director Banking Supervision, said "banks providing Bank Guarantees to Nigeria Bulk Electricity Trading (NBET) Plc and the Transmission Company of Nigeria (TCN) on behalf of Distribution Companies (DisCos), would take full responsibility for: the collections of the concerned DisCos, and the remittances of the DisCos to both NBET and TCN."

For the avoidance of doubt, the letter noted that "no DMB is permitted to open or continue to maintain a collection account for a DisCo without the express noobjection of the DMB that guaranteed its exposure to NBET or TCN."

It also said the payment or settlement of all Nigerian Electricity Supply Industry (NESI) related goods or services shall be made through the Nigerian banking system.

Consequently, it said "all collections for the payments of NESI regulated goods and services provided by a DisCo shall be paid into a designated account.”

The letter also indicated that all energy and nonenergy collections of DisCos, whether cash or cashless, shall only be performed by Deposit It said the bank should be permitted to authorize its agents to collect energy and non-energy payments on its behalf for any DisCo; the actions or inactions of the agent shall be the responsibility of the authorizing bank.