Unless the Distribution Companies and other stakeholders in the Nigerian Electricity Supply Industry (NESI) address bottlenecks hindering adequate revenue collection, financial discipline introduced.
Emefiele. Photo/TWITTER/CENBANK
Stakeholders Demand Improved Electricity Supply Following Revenue, Remittances Increase Unless the Distribution Companies and other stakeholders in the Nigerian Electricity Supply Industry (NESI) address bottlenecks hindering adequate revenue collection, financial discipline introduced by the Central Bank of Nigeria (CBN) may not achieve sustainable solutions. Privatised in 2013, the power sector, aside from failing to perform, has been in financial crisis, requiring perpetual intervention fund from the government. Last year, CBN directed Deposit Money Banks to take charge of the collection of electricity bill payments. A circular signed by Hassan Bello, director of banking supervision had linked the move to the recommendation of the Power Sector Coordination Working Group to improve payment discipline in the Nigerian Electricity Supply Industry (NESI).
•CBN, NERC intervention meet deadlock
Despite the intervention of Central Bank of Nigeria (CBN) and Nigerian Electricity Regulatory Commission (NERC) to address the liquidity crisis rocking Nigeria’s electricity market, the sector continues to struggle under heavy debt.
Being the revenue collectors in the market, NERC had, last year, set a minimum market remittance threshold payable by the 11 power distribution companies operating across the country.
NERC mandated the DisCos to make 100 per cent remittances to the Transmission Company of Nigeria (TCN)’s Market Operator (MO), repay loans to CBN and remit some percentage to Nigerian Bulk Electricity Trading Company (NBET) monthly.