Ibadan, Eko, Jebba, other power firms receive N18.26bn loan from CBN

Ibadan, Eko, Jebba, other power firms receive N18.26bn loan from CBN

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ThemCentral Bank of Nigeria in a bid to resolve the liquidity challenges in the power sector on Monday disbursed a total loan of N18.26bn to five power firms.

The power distribution firms that got the N18.26bn loan are the
Ibadan Electricity Distribution Plc which received the highest amount
of N11.36bn; while  Eko Electricity Distribution Plc followed with
N5.16bn.

For the generation companies, Jebba Hydroelectric Plc received the
highest chunk of N816.83m while Kainji Hydroelectric Plc and Shiroro
Hydroelectric Plc followed with N678.85m and N234.81m respectively.

The amount which was given at an interest rate of ten per cent, with a
repayment period of ten years, is part of the N213bn Nigerian
Electricity Market Stabilisation Facility.

Speaking at the loan disbursement ceremony which was held at the
headquarters of the apex bank in Abuja, the CBN Governor, Mr Godwin
Emefiele described the facility as a major initiative to reset the
economics of the power sector.

He urged the firms to utilise the funds in upgrading their power
infrastructure and warned them against diverting the loan for other
operational activities not contained in the loan agreement.

A total of three power generation companies and two distribution
companies had their respective Chief Executive Officers in attendance
during the disbursement.

The disbursement of the loan is a follow up to the Memorandum of
Understanding which was signed last December between the apex
bank, participating Deposit Money Banks and the Nigerian Electricity
Regulatory Commission.

The December agreement was to prepare Deposit Money Banks to
channel the funds towards de-risking the value chain in the electricity
supply market.