Power: CBN Pays Another N7bn for Gas

cbnThe Central Bank of Nigeria, CBN, on Friday, disbursed additional N6.9bn to five gas suppliers, one power generation company and one power distribution company.

The money, which is the third in the series of disbursements made under the N213 billion Nigerian Electricity Market Stabilisation Facility, brings the total amount given by the CBN, under the facility, to N64.62 billion.

Out of the gas companies that benefited from the N6.9 billion, Chevron Nigeria Ltd received the highest amount of N2.04 billion, followed by Shell Petroleum Development Company with N965 million.

Other beneficiaries of the fund are Pan Ocean Ltd., which got N230 million; Seplat, N739 million; Nigerian Petroleum Development Company, N407 million and Niger Delta Western, N852 million among others.

Godwin Emefiele, governor, CBN, told the firms during the disbursement of the fund in Abuja, that the amount represents debts by the power sector in proportion to the obligations to repay the facility by the five Distribution companies that have so far signed up for the facility.

He said as more DISCOs become confident that issues with their tariff regimes will be resolved and sign up to the facility, it is expected that further disbursements to gas suppliers and other power sector participants would be made.

“While we appreciate that for the gas suppliers, you see this as debts owed for products delivered, we say to you that for CBN and the banking sector, this is a loan with a clear development objectives. This is vital to bringing about more stable and affordable electricity supply to our homes and businesses,” he added.

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