Central Bank of Nigeria, CBN, said its N213bn Nigeria Electricity Market Stabilisation Facility, NEMSF, would improve generation, distribution and transmission of power in the country.
Special Assistant to CBN Governor on Energy Sector, Mr. Yinka Balogun, said this in Abuja on Monday at a roundtable on “Releasing Private Sector Capital for Investment in the Power Sector”.
He said the intervention fund would ensure that the power sector delivered tangible improvement in power supply for the benefit of all Nigerians.
“CBN will disburse these funds in partnership with “deposit money banks” to address the shortfalls in revenue for operators to boost power supply and settle legacy gas debt.
“We believe that once the power sector issues are fixed, Nigeria will return to the path of sustainability at other sectors,” he said.
Balogun said that the funds was mainly for distribution companies and would be monitored to ensure that they were used to purchase specific equipment such as meters and transformers.
He said that the apex bank had started disbursement to power companies that met the conditions of the funds and urged other interested parties to take part in the intervention fund.
Also, Mr. Obinna Ihedioha, the Vice President, Infrastructure Investment, Nigeria Sovereign Investment Authority, NSIA, said that NSIA planned to invest in the power sector.
“The power sector is very important and that is why we are looking at creating a credit investment facility for investors to boost the sector.
“We want to facilitate infrastructure development in the country, so we have also contributed 400 million dollars to the Nigerian infrastructure fund.
“We are looking at allocating those funds into different sectors and power of course is one of the major areas we are looking at. “For gas, as a key fuel source for power generation in Nigeria, we are looking at finding the right gas deal to invest in,” he said.
Ihedioha said NSIA was careful about the investments they were making and since it was investing in the future generation of Nigeria, it would make investments with manageable and safe returns.
The Vice President, Debt Solutions, FBN Capital, Mrs. Baruw Abiola, said the major factor investors were looking at before investing in the power sector was cost reflection of tariffs and stable regulation.
She said that until the factors were properly addressed, investors would continue to be skeptical about putting more money into the sector. She urged the govern-
Viewed 3075 times by 1291 viewers