Sunday 20 December 2015

CBN STARTS N213B ELECTRICITY MARKET STABILIZATION FACILITY


As part of the commitments reached some time ago with other stakeholders, in order to find a lasting solution to poor power supply, the Central Bank of Nigeria has started N213b Nigerian Electricity Market Stabilisation Facility (CBN-NEMSF).

This development was made known by the Deputy Head, Infrastructure Finance office of the CBN, Elder Boma Benebo, during unveiling of 62,021 energy meters financed under the new scheme at Kano Electricity Distribution Company (KEDCO) in Kano. According to him, the scheme is both consumer-friendly and stakeholders-friendly.

Elder Benebo also revealed that one year after the commitment, CBN had disbursed N64b, which was 30 per cent of the total facility.
   

In his own words: “The CBN was expected to provide a banking sector led intervention to provide liquidity to settle legacy gas debts and computed revenue shortfalls, which would be used for permitted expenditure under certain agreements.”
  
He added that the facility was expected to be used for approved activities like turn around maintenance to achieve capacity recovery by power stations, purchase of smart and single phase meters, rehabilitation of transformers, procurement and construction of new distribution sub-stations and other confirmed utilisation.    

Earlier in his speech, the Chief Operating Officer of KEDCO, Mr. Rahul Singh, assured that the company would do its best to see that their services were improved for the maximum use of their consumers and all other stakeholders. The unveiled meters were 62,000 in number, while 38,000 more are expected next year. Among the procured meters there were single phase, three phase and maximum demand for companies. They were also normal and smart prepaid meters.

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