Central Bank of Nigeria releases N120b power stabilisation fund

CBN GOVERNOR 

THE Central Bank of Nigeria (CBN) yesterday said N120 billion out of the N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF) has been disbursed in four tranches. CBN Governor, Godwin Emefiele who disclosed this during the disbursement of the fourth tranche of N55.45 billion to power companies in Lagos, said the project is meant improve the power situation in the country.

According to him, a review of the fund utilization and reports of impact by beneficiaries revealed that the intervention resulted in the restoration of a total of 905 Mega Watts of power into the grid as a result of facility turn around maintenance, contribution of over 25 per cent of the annual capital expenditure budget for the sector. The CBN initiated a N213billion Nigerian Electricity Market Stabilization Facility (CBN-NEMSF) as a follow up to commitments it reached with other stakeholders to address debts owed by generating companies to gas suppliers.

Emefiele said the new fund marked a major milestone in the effort of the apex bank in collaboration with the Federal Government to achieve a contract based electricity market, which featured the signing of Power Purchase Agreements (PPAs) Activation Agreement by Nigerian Electricity Bulk Trader (NEBT). The fund was disbursed to 24 industry participants which include three distribution companies, 14 generation companies – National Independent Power Plant inclusive; one- Service Provider; and six- Gascos to further address the challenges of the sector.