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Power firms to get N213bn lifeline in October

By on September 25, 2014

The Central Bank of Nigeria, the Deposit Money Banks and the privatised power firms will conclude the N213bn deal meant to support the power sector by October after the concerned stakeholders may have signed the necessary contracts and agreements.

The Chairman, Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, disclosed this to our correspondent in a telephone interview on Monday.

“So many contracts as well as agreements will be signed to this effect. Before the end of October this year, the whole process will be concluded,” Amadi said.

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, had on Friday announced new measures to address finance-related issues in the power sector, including the N213bn facility to settle legacy gas debts.

Alison-Madueke, at a joint press conference held with the CBN Governor, Mr. Godwin Emefiele; Minister of Power, Prof. Chinedu Nebo; and Amadi, had said that the facility, which would be provided by the central bank in collaboration with the Deposit Money Banks, would also be used to address revenue shortfalls by the power firms.

However, the Chairman, Presidential Task Force on Power, Mr. Reynolds Dagogo-Jack, and the NERC boss had debunked reports that the money was a bailout fund.

Alison-Madueke had said, “The CBN, in collaboration with the Deposit Money Banks, will provide a total facility of N213bn to settle both the legacy gas debts as announced on August 2 and also the shortfall in revenues to the sector since the handover of the Power Holding Company of Nigeria successor companies on November 1, 2013.”

According to her, N36bn will be tied to commitments to supply specific volumes of gas-for-power, and to negotiate and execute bankable gas supply agreements with the power generating firms.

She also said there would be a new electricity tariff regime to reflect the new developments.

 

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