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LequteMan
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Nigeria- The Central Bank of Nigeria (CBN) and the Deposit Money Banks (DMBs) have signed two Memoranda of Understanding on implementation of the N213 billion Power Sector Intervention Fund.
Mr Godwin Emefiele, the CBN Governor, disclosed this at the signing ceremony on Monday in Abuja.
The two agreements are terms and conditions that set up the guidelines for the fund and participation agreement that sets out the roles of the banks in the transaction.
``We are taking this bold step at this stage now to get the banks who are themselves going to act as the channels through which this funds will be paid to the Discos and Gencos and gas suppliers to come in to also sign their MOU at CBN with NERC and others,’’ he said.
He said that the Nigerian banks had taken the bold step to fund and support the growth of the power sector in the country.
He added that gas supply to the generation companies was a problem, adding that it was a welcome development for banks to recognise these problems and opt to support the sector.
``I want to thank the minister of power, NERC, colleagues and DMBs for their commitment towards ensuring that legacy debts we have are cleared, so that the market can be seen to begin to be viable.
``And electricity can be seen to be generated and distribution improved upon for the good of our people.''
Emefiele said that two major problems of gas tariff and transportation had been identified and it was reviewed to two dollars, fifty cents and 80 cents respectively .
This, he said, increased the gas tariff to three dollars, 30 cents, which the gas suppliers said was commercially viable.
He said that it would not encourage gas production and supply but would indeed also encourage new investors to come into the market to boost the gas industry in Nigeria.
He assured that there would not be any review of tariff that would unduly affect Nigerians to the point they would not be able to pay.
``The tariff are being looked out for as well for it to be commercially viable and I am optimistic that by the time the tariff comes out, it will be according to standard of NERC.
``So, what we are doing here today is to say yes that we are at the point where the Nigeria Deposit banks as well as CBN are ready to work to disburse to clear the legacy debt, to clear the entire chain in power sector and business becomes viable for all ,’’ he said.
#CBN #NERC
Mr Godwin Emefiele, the CBN Governor, disclosed this at the signing ceremony on Monday in Abuja.
The two agreements are terms and conditions that set up the guidelines for the fund and participation agreement that sets out the roles of the banks in the transaction.
``We are taking this bold step at this stage now to get the banks who are themselves going to act as the channels through which this funds will be paid to the Discos and Gencos and gas suppliers to come in to also sign their MOU at CBN with NERC and others,’’ he said.
He said that the Nigerian banks had taken the bold step to fund and support the growth of the power sector in the country.
He added that gas supply to the generation companies was a problem, adding that it was a welcome development for banks to recognise these problems and opt to support the sector.
``I want to thank the minister of power, NERC, colleagues and DMBs for their commitment towards ensuring that legacy debts we have are cleared, so that the market can be seen to begin to be viable.
``And electricity can be seen to be generated and distribution improved upon for the good of our people.''
Emefiele said that two major problems of gas tariff and transportation had been identified and it was reviewed to two dollars, fifty cents and 80 cents respectively .
This, he said, increased the gas tariff to three dollars, 30 cents, which the gas suppliers said was commercially viable.
He said that it would not encourage gas production and supply but would indeed also encourage new investors to come into the market to boost the gas industry in Nigeria.
He assured that there would not be any review of tariff that would unduly affect Nigerians to the point they would not be able to pay.
``The tariff are being looked out for as well for it to be commercially viable and I am optimistic that by the time the tariff comes out, it will be according to standard of NERC.
``So, what we are doing here today is to say yes that we are at the point where the Nigeria Deposit banks as well as CBN are ready to work to disburse to clear the legacy debt, to clear the entire chain in power sector and business becomes viable for all ,’’ he said.
#CBN #NERC
