Abuja-The Central Bank of Nigeria (CBN) on Monday disbursed N18.26 billion to two electricity distribution and three generating companies qualified to access the N213 billion power sector intervention funds.
The companies are Eko Electricity Distribution PLC, Ibadan Electricity Distribution PLC, Jebba Hydroelectric PLc, Kainji Hydroelectric Plc and Shiroro Hydroelectric Plc.
Mr Godwin Emeifele, CBN Governor, disclosed this at the disbursement of the fund in Abuja.
He said that Eko Electricity Distribution company got N5,164 billion; Ibadan Electricity Distribution Plc got N11,36 billion while Jebba Hydroelectric Plc received N816.83 million.
He added that Kainji Hydroelectric Plc and Shiroro Hydroelectric Plc got N234.815 and N678.650 million respectively.
“I am truly happy that we have arrived at this juncture, given the long and uncertain part that led us to the point we are this afternoon.
“It is important that we keep reminding ourselves about the reason we embarked on this journey.
“The CBN sees this N213 billion Nigerian Electricity Stabilisation Facility as a way to kick start the electricity market the way that ensures that the sector delivers tangible improvement in power supply to all Nigerians.
“We see this facility as a major initiative to set the economics of the power sector, in particular the banking sector, the CBN is providing this facility to address recent short falls in the power sector revenue caused by the need for adjustments in the electricity tariff and legacy gas debt,’’ he said.
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He said that the money was a loan expected to be repaid in 10 years, adding that beneficiaries must ensure judicious use of the fund and pay back as at when due.
He added that they should ensure that all input to power were wrapped up in a consistent and acceptable manner in line with the agreements.
“Invest the funds in necessary improvement for generation, plant maintenance, transmission upgrade and distribution network, including transformers and better metering for end users and consumers.”
He commended the companies that met all requirements to receive the fund and urged others still working hard to meet the conditions to key into the system.
This, he said, would help the apex bank to disburse their own tranche of the facility and challenge all stakeholders to continue to work to ensure the improved power supply in the country.
“For us in CBN, our finished line is to see where Nigerians can truly see that power supply have been ramped up and people benefited from economic activities from this improved power supply.
“This is the only way that Nigerians can truly appreciate the work that we have done in the last six months,’’ he said
Prof. Chinedu Nebo, Minister of Power, commended the effort of the apex bank and all stakeholders that made the disbursement happen.
“It is my pleasure to see this day happen; this is prayer answered, this dream come true.
“This is what we envisioned when we started robbing minds together which is a result of uncommon and unprecedented merging between the ministries of power, petroleum resources, the CBN and others,’’ he said.
Nebo reiterated to the companies that the money was not a grant but a loan that must be paid back as at when due.
He said the facility came in because of miscalculation of entering the market without a robust tariff structure.
He said that government idea on the fund would help to settle the struggle of technical, commercial and collection losses beyond what was originally conceived.
The minister noted that though the country had not come to the point of uninterrupted power supply, there had been some improvement in power supply in some areas.
He said the effort would also help to boost the effort of generating and distribution companies for better result, adding that the present administration had infused so much in the sector.
“This is a national assignment; so we must all work together to ensure that we achieve the objective of this project,’’ he said
Also, John Olatunde, Chairman, Ibadan Electricity Distribution Plc, commended the effort of government in supporting the sector and assured that the money would be effectively put to use. (NAN)
