The Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, said on Tuesday in Abuja that the bank’s Nigeria Electricity Market Stabilisation Facility, NEMSF, would improve power supply nationwide.
Mr. Emefiele stated this while signing a Memorandum of Understanding, MoU, on accessing the NEMSF, with the Ministries of Petroleum Resources, and Power, Nigerian Electricity Regulatory Commission, NERC, and other stakeholders.
The CBN boss said that the bank had earmarked N213 billion for the NEMSF, adding that the fund would be disbursed at 10 per cent interest per annum with a tenure that would not be more than 10 years.
He said that the facility would be administered through deposit money banks while NERC would reset the Multi-Year Tariff Order (MYTO) to accommodate the repayment of the loan.
According to him, the facility will kick start the electricity market in a way that it will ensure that the CBN delivered tangible improvements in power supply.
“We see this facility as a major initiative to reset the economics of the power sector.
“In partnership with the banking sector, the CBN will provide this facility to address shortfalls in power sector revenues caused by adjustments in electricity tariff and legacy gas debt,’’ he said.
Mr. Emefiele said that “in exchange for this intervention, we expect parties that are signing this agreement today to ensure that funds are paid as at when due.
“They should ensure that all input into the generation of power are wrapped up in a consistent manner and still invest the fund and ensure improvement in generation plant maintenance.
“The parties involved in this deal should also ensure upgrade of transmission and distribution networks, including transformers.’’
He said that the only way to make the populace appreciate the efforts being made in the power sector was to guarantee improved power supply.