The Central Bank of Nigeria has disbursed the sum of 6.9 billion naira credit facility for the Electricity Market Stabilization.
Most of the beneficiaries in the third batch disbursement are companies that supply gas to Nigeria’s electricity plants.
The facility is being issued to the gas companies as payments owed them by the generating and distribution companies. Seven gas companies benefited from the disbursement.
The Central Bank Governor, Mr Godwin Emefiele, observed that the debts owed the gas companies had risen up to 40 billion naira as at December 2014.
He said that the debts were caused by electricity tariff not reflecting the true cost of operating the privatized generation and distribution companies and this intervention is expected to address the situation.
The privatization of the nation’s power sector had raised hope that electricity generation would improve as more power plants were established across the country.
However, 20 of the 23 power plants are powered by gas which has been in short supply, thereby holding back over 2,500 megawatts of electricity.
The beneficiaries of the facility accepted the payments with renewed commitment to improve gas supply for domestic use and ultimately improve electricity supply in Nigeria.
