The managing director of Nigerian Bulk Electricity Trading Company (NBET), Dr. Nnaemeka Eweluka, has commended the Central Bank of Nigeria (CBN) stabilizing the Nigerian Electricity Supply Industry (NESI) with financial interventions.
Shortly after takeoff, NBET was faced with real capitalization issues as it had no equity capital for financial obligations under the Power Purchase Agreements (PPAs), and the Egbin sales proceeds were not remitted to the company, as planned.
Also the $350 million Eurobond proceeds earmarked for NBET’s capitalization was given back to the Debt Management Office (DMO) by NBET without being depleted. NBET was therefore empty and heading for collapse.
NBET’s sources of funding to meet its payment obligations to GenCos and gas suppliers had become limited to the insufficient monthly market remittances from DisCos for the sale of energy, until the intervention loans from the Central Bank of Nigeria (CBN), guaranteed by the federal ministry of finance.
At a recently organized two day capacity building workshop for journalists in Lagos, Dr. Eweluka commended the CBN, who through its critical interventions in the power sector had performed a very positive role in trying to sort out the electricity market challenges.
According to him, the apex bank working in collaboration with the Transmission Company of Nigeria (TCN) and the Electricity Distribution Companies (DisCos) was able to identify critical projects and if quickly addressed would restore normalcy and increase production and supply of electricity.
“So what happened was that CBN working with the Transmission Company of Nigeria, and the Electricity Distribution Companies asked what critical projects needs to be addressed to quickly yield results in the sector.
“And so the DISCOs and TCN worked together to come up with a list of some critical projects and I can’t be specific on the amount, maybe we can furnish that subsequently but that is what is happening. CBN decided to find those critical interventions so that there can be some quick wins even as the bigger project is being implemented, let’s have some quick wins that will have impacts on the lives of Nigerians,” the NBET boss said.
By Chidi Ekpewerechi, Abuja
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