Professor Uche Chibuike, a member of the monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has frowned at the whopping N701 billion which the Federal Executive Council had mandated the CBN to fund the power sector with, saying that it will impact on the health of Nigeria’s banking system, Tribune reports.
In the recently released personal statements of MPC members, Chibuike said Nigeria cannot at the present time afford another banking crisis. This is even more so given the fact that the fallouts of the last one are yet to be satisfactorily resolved. He said that the Nigerian Electricity Regulatory Commission (NERC) has already made it clear that the approved intervention fund will not be sufficient.
Furthermore, the schism between the electricity distribution companies and the Federal Ministry of Power, Works and Housing over the nature and structure of debts owned has continued to widen, at least in the public space. As such, Chibuike noted that it is safe to predict that the said intervention fund, like the first one, is unlikely to meaningfully address the problems of the power sector.