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CBN and banks

Why disbursing N600bn without reviewing Discos’ terms of 2013 concession?

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Industry analysts who reviewed the decision of the Central Bank of Nigeria (CBN) in setting fresh hurdle for electricity distribution companies (Discos) wishing to access the N600billion power sector intervention fund have expressed worry.

In their minds, they queried why the apex bank is faster in disbursing the intervention fund without first allowing the statutory conduct of review of their performances since the 2013 privatization as provided by law.

The CBN had recently given terms to Discos ahead of giving out the intervention fund, saying the disbursement of the fund will be based on the accountability system of companies regarding their accountability systems and performance through revenue remittance.

It would recalled that the 2013 energy sector privatization regime had been due to review so as to ascertain the compliance of concessionaires every five years which was due last year but was shifted to 2019 had not been done before the planned disbursement of the N600bn power sector intervention fund.

Explaining more on the apex bank’s terms and conditions, the Nigerian Electricity Regulatory Commission (NERC) assured to back up enforcement of the terms against any defaulting party. NERC, who gave the details at its sixth meeting with Nigerian Electricity Supply Industry (NESI) stakeholders in Lagos, said “The CBN cautioned that the disbursement of the NGN600billion intervention fund is premised on an accountability framework which hinges heavily on the performance of Discos and should be reflected in improved collection efficiency and revenue remittance.”

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