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| CBN Gov, Godwin Emefiele |
The CBN, therefore,
listed 18 infractions, which it circulated yesterday to banks participating in
the scheme.
This action of the
apex bank intended to remove bottlenecks responsible for low power generation.
Some participating banks are yet to fulfill their December 22, 2014 agreement with the apex bank with regards to releasing funds to generating and distributing companies by the first week of last year.
This situation is
therefore frustrating investors plan to upgrade their processes aimed at
effective and efficient delivery of electricity.
In a circular
titled: “Sanctions Grid to Deposit Money Banks that participate under the CBN –
Nigeria Electricity Stabilization Facility (CBN-NEMSF)” by its Director in
charge of Financial Policy and Regulation Department, Mr. Kevin N. Amugo
outlined penalties-ranging from warning, to fines to the tune of N500, 000
daily-for infractions.
Fourteen money
deposit banks are participating in the refinancing scheme, in which the World
Bank offered to guarantee $1.75 billion lifeline, representing a total of $7
billion budgeted for Nigeria over a four-year period.
While some
generating companies and distribution firms were presented with disbursement
early in 2015 to meet some of their obligations, others since then have
remained unable to access the facility.
It was not clear
yesterday if the World Bank’s facility too was being hampered.
Its Nigeria Country
Energy Task Team Leader, Mr. Eric Fernstrom, who announced the assistance in
December 2014, noted that the Bank was greatly encouraged to offer the
additional assistance to ensure that the reform objectives were realised.
On November 18, 2014
the CBN equally signed a MoU with the key players in the power sector on the
financing, which is under the CBN’s Nigerian Electricity Market Stabilisation
Facility (NEMSF).
The agreement, which
was a the fall-out of the collaborative effort of the CBN, the Federal
Ministries of Power and Petroleum Resources and the Nigerian Electricity
Regulatory Commission (NERC), was structured to find solution to the challenges
in the electricity sector despite the handover of power firms to new owners.
Source: The Guardian
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