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Power Ministry in talks with CBN, PenCom over funding

By on September 23, 2015

The Permanent Secretary in the Federal Ministry of Power, Ambassador Godknows Igali has said the ministry is currently discussing with the Central Bank of Nigeria (CBN) and the National Pension Commission (PenCom) on the possibility of raising more funds for operators in Nigeria’s power sector.

Igali told a gathering of operators at a power sector interactive workshop in Abuja that the discussion could lead to CBN, PenCom and other relevant agencies of government making available a pool of fund that would be accessed by the sector at a single digit interest rate.

Director of Public Affairs at System/Market Operations of TCN, Obiora Uzodike made this disclosure in a statement on the outcome of the two-day session, which was organised by the System and Market Operation departments of TCN to enable participants in the electricity market to imbibe best business practices in discharge of their tasks, made this disclosure.

“The Permanent Secretary assured the market participants that the ministry was discussing with relevant federal agencies such as Central Bank of Nigeria and Pension Commission for the purposes of providing a pool of funds that can be accessed at single-digit to ramp up operations and service delivery,” the statement read.

Already, the CBN in 2014 provided N213 billion to the power sector as an intervention fund to mitigate the sector’s chronic illiquidity.

Accordingly, the intervention fund was commercially sourced with stringent conditions attached to it to promote accountability.

PenCom on the other hand has yet to decide on how best to fund Nigeria’s infrastructure deficit with its accumulated pension funds which is now in excess of N4.6 trillion.

“He also informed the workshop that bi-lateral discussions were on-going with several international agencies on how to build flared-gas power plants, micro-grids and other renewable energy plants in order to provide more power for the grid and for Nigerians,” the statement added.

The MO and SO initiated the workshop to advance operators’ appreciation of the market rules and its applications in the market.

Igali, it was noted also expressed the optimism that the current shortcomings of the electricity market would be overcome with time irrespective of the difficulties.

The statement equally quoted the Managing Director of the System and Market Operations, Mrs. Ngozi Osuhor as saying that the workshop was organised to enhance the understanding of the market rules and grid codes among market players.

Osunhor explained that the idea was to get operators become more efficient in service delivery within the market.

She also stated that the workshop was part of its core responsibilities of educating market participants and ensure that the market grows on a sustainable basis.

 

[ThisDay]