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Latest Financial Stability Report (FSR) of the Central Bank of Nigeria (CBN) on power sector has revealed that out of N114.7b so far given to major power companies in Nigeria, only about N6.26bn had been repaid leaving N106.64bn an outstanding debt.
The benefiting companies had been crying loud for long over what they described as galloping debts owed by several government agencies which they said had been frustrating their speed in power deliveries.
It would be recalled that N213bn NEMSF, which was established in 2015, was to serve as borrowing window to operators in the power sector at an interest rate of 10 per cent.
Analysis of the beneficiaries show that whereas N49.62bn was provided to seven power distribution companies, N49.06bn was given to 15 power generation companies.
Also, about N15.6bn was provided to fund the operation of six gas companies while N460m was given to one service provider in the power sector.
According to the report, “Total disbursement of funds from inception stood at N114.74bn to 29 eligible electricity market participants. The sum of N4.11bn was repaid by eight distribution companies bringing the cumulative total repayment to N6.26bn.”
The fund had assisted power companies to effect capacity recovery programmes on three hydro power stations while 10 gas turbines at major thermal power plants including Geregu, Transcorp, Ughelli and Ibom power plants were repaired and put to use.
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