DisCos Receive N3.01bn Under NEMSF-2 Intervention

The Central Bank of Nigeria(CBN’s) intervention in the electricity sector has led to the 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 governor, CBN, Godwin Emefiele, who made the disclosure in Abuja, explained that, the facility was aimed at improving liquidity status of the DisCos and aiding their recovery of legacy debt. ‘This brings the cumulative disbursement under the facility to N254.39 billion,’ he added

The Central Bank of Nigeria(CBN) has, however, disbursed N18.26billion to the first batch of beneficiaries of the N 213 billion Nigeria Electricity Market Stabilization Facility (NEMSF).

This comprises two electricity Distribution Companies (DISCOs) and three electricity Generation Companies (GENCOs).

Recall that on February 2, 2015, Emefiele, reiterated that the N 213 Billion Nigeria Electricity Market Stabilization Facility (NEMSF) 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.

While he congratulated the first batch of beneficiaries, which he said, had met the conditions precedent to disbursement, Emefiele urged the beneficiaries to ensure that the funds are repaid as and when due, just as he stressed the need for them to ensure that all inputs into the generation of power are ramped up in a consistent manner.

He equally charged them to invest the funds in the necessary improvements in generation plant maintenance, transmission upgrades and distribution networks including transformers and better metering for end consumers.

Furthermore, he urged other Distribution and Generation Companies to take a cue from the first batch of beneficiaries so as to receive their respective tranches of the facility as soon as possible.