The Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, said the bank has disbursed a total of N304.8bn to fund the Nigeria Electricity Market Stabilisation Facility, and the National Metering Program.
The bank disclosed the funding in the communique of the 258th Monetary Policy Meeting on Tuesday.
The disbursement is coming amidst the country’s electricity crisis.
Emefiele disclosed that a chunk of the money was allocated to Electricity Market Stabilisation Facility which was N254.46bn, while the sum of N2.53bn was disbursed to Distribution Companies (DisCos) for their Operational Expenditure (OpEx) and Capital Expenditure (CapEx).
The bank revealed that it disbursed N47.82bn for the procurement and installation of 865,956 meters across the country.
Emefiele had signed a Memorandum of Understanding, MoU, on accessing the NEMSF, with the Ministries of Petroleum Resources, and Power, Nigerian Electricity Regulatory Commission (NERC) back in 2014.
The fund was initially arranged at 10 per cent interest per annum with a tenure that would not be more than 10 years.
The National Mass Metering Programme was initiated to close the metering gap in the Nigerian electricity supply and ensure that consumers are billed properly.
The CBN Governor said, “To improve electricity supply in order to lower the overall cost of production in the real sector, the Bank also intervened in the power sector to facilitate the deployment of enabling infrastructure. Summarily, the sum of N2.53bn was disbursed to Distribution Companies (DisCos) for their Operational Expenditure (OpEx) and Capital Expenditure (CapEx), under the Nigeria Electricity Market Stabilization Facility – Phase 2 (NEMSF-2).
“Cumulative disbursement under the NEMSF-2 currently stands at N254.46bn. Under the National Mass Metering Programme (NMMP), the Bank disbursed N47.82bn for the procurement and installation of 865,956 meters across the country.”