The Central Bank of Nigeria (CBN) says it has paid out over N1.3 trillion to support the supply of energy to Nigerians in the last five years.
CBN Governor Mr Godwin Emefiele made the remarks at a news conference following a meeting of the Bankers’ Committee in Abuja on Monday.
“So what we are trying to say here is that the CBN has always been there to support the electricity sector.
” As you all know, in the last five years we have paid out over 1.3 trillion naira to support through generators or discos or to buy equipment or buy meters or improve what is paid to the electricity generation companies;
” So that they can continue to pay for their gas and then the system can continue to work. ”
Emefiele further said that the bank has disbursed N11.11 billion to power sector players under the Nigeria Bulk electronic commerce payment insurance facility, bringing the cumulative payout under this facility to 1.28 trillion naira.
” The sum of N12.64 billion was also released on discos under Nigeria power market stabilization phase two line two.
“Community disbursement under name two, first to 232.93 billion naira.
“Both interventions have been designed to improve access to capital and facilitate development to facilitate infrastructures in Nigeria’s electricity chain sector,” he added.
However, Emefiele has committed to the commitment of Apex Bank to support further distribution companies (DISCOs) to provide a stable energy supply to Nigerians.
He said that Apex Bank is working with the Power Minister and NERC to see what can be done to support them.
Emefiele also said that the bank would provide interventions for the NNPC to ensure that they import petroleum products that stop the shortage in the country.
He noted that the Minister of Finance is making commitments with the Monetary Policy Committee (MPC) to look at what can be done to ensure that adequate funding is provided to make petroleum products adequately available in the country.
“We also say we will engage the NNPC ourselves if there is any kind of intervention that we can offer to help make it easy to bring these products so that this shortcoming can be stopped.
“Then we see that when supply goes up, people are relatively confident that if they sell what they hold, be it petrol or diesel, that they can simply go and replace it, that the arbitrary price increases go down.
“When arbitrary price decreases, of course, we can begin to see that there is gradual moderation in the price of this product.
“This would eventually lead to the moderation of the prices of other products, that its price would increase as a result of the arbitrary increase in the price of these items.
“This is simple as we think the CBN can work with them,” he said.
Emmefiele, therefore, calls on NNPC to take urgent steps to ensure an adequate supply of petroleum products in Nigeria, as well as to reduce the rate of arbitrary increase in the price of these petroleum products from oil market.
He also noted the infinite rate of oil theft that has been recorded recently and its weak impact on government revenue and the nation’s reserves.
“In the medium term, MPC is hopeful that a proposed start-up of the Dangote refinery during the year will help to improve the supply of petroleum products in Nigeria.
“MPC also noted that the rising price of diesel is compounded by the problem of inadequate power supply in Nigeria, which has negatively affected house prices.
“MPC advises the CBN management and tax authorities to take specific and urgent actions to prevent many power generation stations from being closed for turnaround maintenance, resulting in the current unjustified shutdown of our generated assets,” said Emefiele.
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