The Central Bank of Nigeria will allocate a sum of N240bn to emergency capital expenditure for interface repairs and network improvements by power firms, the Federal Government has said.
Checkout Magazine learnt that the apex bank is investing the fund to also help in boosting the capacities of power distribution companies to distribute electricity.
After the unbundling of the defunct Power Holding Company of Nigeria in November 2013, a total of 11 distribution companies and six generation companies emerged and were handed over to private investors.
Despite being privatised, there had been liquidity concerns in the sector, a development that had made the government intervene by pumping funds into the industry often.
In a document entitled ‘Update on the Nigeria Electricity Supply Industry,’ obtained from the Federal Ministry of Power in Abuja on Friday, the Federal Government stated that it was again supporting power firms through the CBN with N240bn.
Under the investment section in the document, the government said, “N240bn in emergency CAPEX (capital expenditure) provided by the CBN for interface repairs and (for) Discos in network improvements.”
The government, however, stated that it had recorded return of investment with the N105bn Afam III, IV, V power plants sale, and the disposition of Yola Disco at N19bn.
