The Central Bank of Nigeria released a total of N38.53bn to power firms between January and June this year under the Nigeria Electricity Market Stabilisation Facility, a new report by the apex bank has said.

The facility was set up by the CBN in 2015 to provide liquidity for the Nigerian electricity supply industry and put it on the path to economic viability and sustainability. Specifically, the NEMSF is targeted at facilitating the settlement of shortfall in revenue and legacy gas debt obligations, due to market participants.

The market participants are gas companies, electricity generation companies, the Transmission Company of Nigeria, and electricity distribution companies as well as service providers. The CBN in the economic report said that the N38.53bn was disbursed to one distribution company, 17 generation companies, six gas companies and five service providers.

It said cumulatively, as of the end of June this year, about N158.74bn had been disbursed to the Nigeria Electricity Supply Industry Stabilisation Strategy Limited to refinance 37 eligible electricity market participants. It added that the sum of N4.99bn being the principal repayment was received in the period under review, bringing the total repayment since inception to N20.56bn.

Source: The Punch