CBN Governor, Godwin Emefiele yesterday said N120 billion out of the N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF) has been disbursed in four tranches. He made this disclosure during the disbursement of the fourth tranche of N55.45 billion to power companies in Lagos and said the project is meant improve the power situation in the country.
According to him, 905 Mega Watts of power have been restored into the national grid as a result of the intervention. A review of the fund utilization and reports of impact by beneficiaries revealed that this was possible because of the corollary facility turn around maintenance and a contribution of over 25 per cent of the annual capital expenditure budget for the sector.
The CBN initiated a N213 billion Nigerian Electricity Market Stabilization Facility (CBN-NEMSF) as a follow-up to commitments it reached with other stakeholders to address debts owed by generating companies to gas suppliers.
According to Emefiele, the new fund marked a major milestone in the efforts of the apex bank in partnership with the Federal Government at achieving a contract-based electricity market, which featured the signing of Power Purchase Agreements (PPAs) Activation Agreement by Nigerian Electricity Bulk Trader (NEBT). The fund was disbursed to 24 industry participants which include three distribution companies, 14 generation companies – National Independent Power Plant inclusive; one- Service Provider; and six- Gascos to further address the challenges of the sector.