Electricity Firms Access CBN’s Facility To Clear Debts

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The Central Bank of Nigeria (CBN) has affirmed that it has disbursed a total of N158.7bn out of the N213bn which was stipulated to be given to the new owners of the defunct Power Holding Company of Nigeria.  The facility, which is N213 billion, was initiated in September 2014 to clear debts that were inherited from the defunct PHCN by the privatized utility firms after November 1, 2013.

It was learnt that the Central Bank of Nigeria had made this payment over five batches to 37 firms since 2015. The fifth batch of payment which amounted to the N158.7bn was made on 6th April 2018. However, about N51.8bn of the fund is yet to be disbursed to 40 participating firms.

 

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This payment was made via the Nigeria Electricity Market Stabilization Facility (NEMSF) of the Central Bank of Nigeria.

The disbursement is put under a Special Purpose Vehicle (SPV) called the NESI Stabilization Strategy Limited with Registered Company (RC) number: 1237000, the Daily Trust learnt. It was to be disbursed to Nigerian Electricity Market (NEM) participants at a single digit interest rate with a moratorium of six months.

The breakdown of the disbursements showed that seven Distribution Companies (DisCos) were slated to get N56.355bn. CBN said it has disbursed N49.841bn which is 88 per cent while N6.513bn representing 12 per cent is pending.

For the Generation Companies (GenCos), 18 of them are to benefit from N86.834bn and have gotten N73.545bn representing 85 per cent. A balance of 15 per cent which is N13.288bn is still pending.

 

Read Also; Nigeria Collects $64.6M International Electricity Debt

Six Service Providers which include the Transmission Company of Nigeria (TCN) and the Market Operator (MO) are also in the scheme to get N25.908bn. They have received N10.463bn (40 per cent) and are expected to get N15.44bn which is 60 per cent, the disbursement record showed.

Six Gas Companies (GasCos) are to get N41.528bn. N24.892bn has been disbursed to them which is 60 per cent and they await the disbursement of N16.635bn which will be the 40 per cent outstanding sum.

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About Omobright 302 Articles
A FUTA Alumnus, a geophysicist, a cartographer, a freelance writer and poet. Loves adventure, music, movies, football and food. Hates monotony. Hobbies are reading, writing and travelling. Interested in human, society, academics and power(energy) sector.

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