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Business & Finance

CBN Report: Power Sector Got N41.88bn Electricity Facility In Half-Year

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The Central Bank of Nigeria (CBN) says 15 operators in the nation’s power sector received a total of N41.88 billion under the Nigeria Electricity Market Stabilisation Facility between January and June this year, one year after the last of such disbursement.

A breakdown of beneficiaries, according to the apex bank in its Financial Sector Report for the first half of 2016 released recently, showed that there were seven power generation companies, five gas suppliers, two electricity distribution companies and a service provider.

While two Gencos got N22.50 billion, the lion’s share of the amount disbursed in the first of the year; five gas firms followed with N10.36 billion; two Discos received N8.56 billion and service providers N0.46 billion.

The amount received in the period under review, brought total disbursement as at June 30, 2016, to N106.64 billion, with seven Discos getting N49.62 billion or 46.53 per cent; followed by N32.89 billion or 30.63 per cent which went to nine Gencos. Six gas companies got N23.89 billion or 22.40 per cent; and the loan service provider- N0.46 billion or 0,43 per cent.

In the first half of 2016 also, according to the report, a total of N11.59 billion was disbursed to one aviation and two power projects under the Power and Aviation Intervention Fund, with the power firms getting N9.61 billion, or 80.32 per cent, leaving the remaining N1.89 billion for the airline project.

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“Cumulative disbursement from inception stood at N261.20 billion for 57 projects, comprising 41 power projects and 16 airline projects at end-June 2016,” the report noted.

It added that the sum of N11.35 billion was repaid by 27 obligors during the review period, bringing cumulative total repayment since the inception of the fund to N75.55 billion in respect of 57 projects.

Specifically, N36.21 billion repayments have so far been made in respect of 41 power projects by 29 obligors; while N39.34 billion was repaid by 10 obligors in the airlines sector in respect of 16 projects.

The CBN expects “that the concessionary interest rate of seven per cent and tenor of 10 to 15 years on the PAIF interventions would reduce the cost of funds to beneficiaries and facilitate repayments.”

The apex bank expressed hope that the intervention fund provided the much needed life-line to the domestic airline industry.

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