THE Central Bank of Nigeria (CBN) has confirmed the latest release of N3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenditure of electricity distribution companies (DisCos).
The CBN Governor, Godwin Emefiele, who made the disclosure today in Abuja, explained that the facility was aimed at improving the liquidity status of the DisCos and aiding their recovery of legacy debt.
The CBN has so far disbursed a total sum of N18.26 billion to the first batch of beneficiaries of the N213 billion NEMSF.
Emefiele reassured that the facility was a way of kick-starting the electricity market in order to ensure that the sector delivers tangible improvement in power supply for all Nigerians.
He explained that the CBN, in collaboration with the banking sector, offered to provide the facility to address recent shortfalls in power sector revenues caused by needed adjustments in the electricity tariff and legacy gas debts.
The ICIR had reported that the World Bank had also issued a loan facility support of $750 million to facilitate a credible electricity market in Nigeria’s power sector.
An industry source attributed the support from the World Bank and interventions from the apex bank as one of the key reasons for marginally improved power supply across the country.
“Most of the positives we are seeing today is one of the demands of the World Bank in lending us support to drive a credible electricity market. I can confirm to you now that Nigeria has set a minimum threshold to draw World Bank’s facility support with the persistent market reforms being undertaken currently by the regulator, the NERC,” a power sector governance expert and principal partner of Nexier Power, Emeka Okpukpara, told The ICIR.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.