CBN, NBET May Begin Disbursement of N701bn Power Stimulus this Week
Ministry wants special fund for power sector
The Central Bank of Nigeria (CBN) and Nigerian Bulk Electricity Trading Plc (NBET) may begin disbursement this week, having concluded arrangements to periodically draw down on the N701 billion stabilisation fund the government approved for the power generation companies (Gencos), THISDAY has learnt.
This is however coming few days after the government through the Nigerian Electricity Regulatory Commission (NERC) signed off the ‘eligible customers’ regime, which according to it would now allow the Gencos to sell their stranded generation capacity to willing consumers with minimal interference from the 11 electricity distribution companies (Discos).
Industry sources, who spoke to THISDAY yesterday in Abuja, confirmed the development and explained that a final approval of this was being expected from the government after which the payments would then commence.
They, however, stated that, as part of the arrangements for the disbursement of the N701 billion financial guarantee approved by the government to support NBET’s financial commitments to the Gencos, payments could be made directly to gas firms, who supply gas to the Gencos, to offset Gencos’ debts to them instead of paying to the Gencos.
They also said the gas supply invoices for January and February from the Gencos were ready for payment and could be taken up immediately the CBN commences disbursement.
An official in one of the Gencos explained to THISDAY that these were parts of the arrangements, adding that the Gencos would be asked to submit their monthly gas supplies invoices to the NBET and CBN to validate and make payments directly to the gas suppliers instead of paying to the Gencos to pay the gas suppliers.
He also stated that the Gencos were very comfortable with such arrangement, noting that they would in this regard concentrate on producing power, expanding their generation capacities, and bother less on meeting their monthly gas supply bills.
When contacted for comment on this development, the mobile number of the Managing Director of NBET, Dr. Marilyn Amobi, could not be reached while a short message service (SMS) to the mobile number was not responded to as at the time of filing this report.
Similarly, the Executive Secretary of the Association of Power Generation Companies (APGC), Dr. Joy Ogaji, told THISDAY over a telephone conversation that the terms for the fund disbursement were still being worked out and she could not confirm when payments would commence.
The Minister of Power, Works and Housing, Mr. Babatunde Fashola, had recently clarified that the N701 billion power intervention fund would be spread over the next three years to give comfort to the operators in the sector.
Meanwhile, the ministry of power has advocated the provision of special funds for the power sector, as well as an approval by the government for its ministries in charge of the country’s infrastructure to utilise all funds released to them even after expiration of a financial year.
A communiqué issued after a three-day retreat held by the ministry of power, works and housing, which was sent to THISDAY, indicated that regarding the power sector, the ministry also noted that the problems associated with the privatisation of the sector would be resolved through the power sector recovery programme, which the government has worked in union with the World Bank to develop.
It noted that other resolutions reached at the retreat included the need to ensure that power consumption in the country ought to commensurate with the tariff paid by consumers; the need to conduct a survey to develop an accurate data base of energy consumers in the country, as well as an order to the Rural Electrification Agency (REA), Nigerian Electricity Management Services Agency (NEMSA), and NBET to work together and come up with a position paper on lasting solution to the inadequate metering facilities in the country.