CBN Says it Gave GENCos and DisCos N1.3 Trillion in 5 Years
- Electricity companies in Nigeria received about N1.3 trillion from the Central Bank of Nigeria (CBN) to provide meters
- The CBN governor, Godwin Emefiele said this during the Monetary Policy Meeting in Abuja on Monday
- Emefiele said that the money was given to the DisCos and GenCos to purchase electricity meter within five years
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Despite the erratic power supply in Nigeria, the Central Bank of Nigeria (CBN) said it disbursed N1.3 trillion to the power sector in Nigeria in the last five years.
Godwin Emefiele, the Central Bank of Nigeria governor said this during the Monetary Policy Meeting (MPC) in Abuja on Monday, March 21, 2022, according to a report by Nairametrics.
Emefiele stated his concern about how the regular power outages could worsen the burden on goods.
What Emefiele is saying?
The apex bank's helmsman stressed that the bank disbursed the funds as support to the Generating and Distribution companies in Nigeria in the last five years for them to acquire equipment or buy meters or enhance payment to power generating companies and also pay for gas.
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He said that the bank has also given N11.11 billion to the power sector operators under the bulk electronic trade payments assurance facility, bringing the total amount given to the GenCos and DisCos to about N1.28 trillion.
The CBN pledges continued support to the power sector
Emefiele promised the bank’s resolve to continue helping the distribution companies (DisCos) in efforts to provide a durable power supply in Nigeria.
He said the bank will meet the Power Minister and the National Energy Council to find ways to assist the power companies.
He reiterated the apex bank’s resolve to help the Nigeria National Petroleum Corporation (NNPC) to provide petroleum goods in Nigeria.
IMF tells CBN to reduce loan intervention schemes to Nigerians
Legit.ng has reported that the International Monetary Fund (IMF) has asked the Central Bank of Nigeria (CBN) to reduce the number of loans or credit facilities it gives to Nigerians because they may cause distortions in the market.
The IMF said the loans are a reaction to troubles caused by the COVID-19 pandemic, according to a report by The Punch.
In a report titled Nigeria Staff Report for the 2021 Article IV Consultation, the IMF stated that as it strengthens, the CBN needs to pull back its loan intervention programmes which were ramped up as part of the pandemic crisis response.