Power firms in Nigeria have received N114.74 billion Naira under its Nigerian Electricity Market Stabilisation Facility from Central Bank of Nigeria
The amount is contained in the Financial Stability Report of the apex bank, which was obtained on Friday by our correspondent in Abuja.
The report stated that while N114.7bn was provided to the power firms as loans, a total of N6.26bn had been repaid leaving an outstanding debt of N106.64bn.
The N213bn NEMSF, which was established in 2015, is being provided as loans to operators in the power sector at an interest rate of 10 per cent.
Some of the areas where the funds are to be invested are plant maintenance, upgrade LG transmission and distribution networks, acquisition of transformers and effective metering to consumers.
A breakdown of the disbursements showed that the sum of N49.62bn was provided to seven power distribution companies, while N49.06bn was given to 15 power generation companies.
In the same vein, the sum of N15.6bn was provided to fund the operation of six gas companies while N460m was given to one service provider in the power sector.
It said, “Total disbursement of funds from inception stood at N114.74bn to 29 eligible electricity market participants. The sum of N4.11bn was repaid by eight distribution companies bringing the cumulative total repayment to N6.26bn.”
The CBN said through the intervention, the bank had been able to facilitate the recovery of 1,193 megawatts of generating capacity through the overhaul of 10 turbines as well as acquisition of one mobile injection sub-station.
Others are acquisition of 414,000 meters and 70,310 units of 500KVA transformers by distribution companies; rehabilitation of 332km of 11KV lines and 130km of 0.45KV lines; procurement and construction of 34 new distribution sub-stations.
The report added that capacity recovery programmes were carried out in three hydro power stations while 10 gas turbines at major thermal power plants including Geregu, Transcorp, Ughelli and Ibom power plants were rehabilitated.
The CBN Governor, Mr. Godwin Emefiele, had while speaking during the commencement of the facility, urged the firms to utilise the funds in upgrading their power infrastructure.
He had said the Gencos and Discos would not only be the beneficiaries of the loans, other gas suppliers in the electricity market would also benefit from the funds.
“We want to unlock the potential of the power sector and so this facility is meant to catalyse the power sector. The funds will be used to procure meters, and certain spares that they need to improve their business and power losses in the grid,” he added.