A federal government memo has disclosed that the Nigerian Bulk Electricity Trading Plc (NBET) will have up to 10 years to repay the N701billion financial facility obtained from the Central Bank of Nigeria (CBN) to guarantee payments for electricity generated by the generation companies (Gencos) for the next two years, This Day reports.

NBET recently got a N701 billion from the CBN to guarantee Gencos’ payments for gas supplied to them. The payments would be made directly to gas suppliers upon Gencos presentation of their gas invoices to NBET. Providing further details on the workings of the N701 billion, the government memo stated that the NBET would have a period of 10 years to repay the loan.

It added that it would however continue to collect an average of 25 per cent of its invoice from the Discos throughout 2017, and thereafter gradually increase it over the course of 2018 to possibly 80 per cent.

The memo also identified the other policy interventions the government was considering for the sector to include a centralised payment of the monthly electricity debts of its Ministries, Departments and Agencies (MDAs); direct payment of existing MDAs debts to upstream market participants; and simplified tariff methodology by the Nigerian Electricity Regulatory Commission to ensure the sector operates cost reflective tariffs.