The Central Bank of Nigeria (CBN) says it has paid over N24bn to gas suppliers and released another fund to electricity distribution companies (DisCos) for the purchase of 704,928 electricity meters.
The apex bank said it also purchased and installed over 500 transformers to enhance the distribution networks, and over 2,000km of 11kV lines and 130km of 0.45kV lines were rehabilitated.
It also provided the DisCos N13.78bn of security cover to the Nigerian Bulk Electricity Trading (NBET) and the market operator as required under the vesting contracts/market rules in a bid to stabilise the power sector.
According to the Nigerian Electricity Management Stabilisation Facility (NEMSF) progress report, which was presented to operators in the industry at the 27th power sector monthly meeting, CBN said its intervention in the power sector was to prevent a collapse of the industry due to the revenue shortfalls the sector has been battling with since post-privatisation.
CBN statedthat the core objectives of NEMSF was to reset the economics of the power sector by providing liquidity to the industry and settling the debt overhang that arose during the interim rules period as a result of revenue shortfalls during that time.
According to the bank, parts of its intervention consist of “the purchase of 704,928 metres through the facility, purchase and installation of over 500 transformers to enhance the distribution networks, and over 2,000km of 11kV lines and 130km of 0.45kV lines were rehabilitated.
“More than 1,000 megawatts of generation capacity was recovered, 56 substations were rehabilitated/constructed, and over N24bn has been paid to gas suppliers to ensure adequate supply of gas to the Nigerian power sector.
“In order to prevent a collapse of the industry, the CBN intervened to provide liquidity and stabilise the sector through the Nigerian Electricity Market Stabilisation Facility.”
The latest report, however, added that it was CBN’s aim to also bring about a contract-based electricity market where participants are governed by market rules and instil discipline, as well as facilitate tangible improvement in power supply across the country.