fynestboi: THE Central Bank of Nigeria (CBN) says it has disbursed over N109 billion to 20 companies in support of the ongoing power reform in the country. The CBN Governor, Malam Sanusi Lamido Sanusi, disclosed this in Abuja at a Special Forum on ‘Financing the Power Sector Reforms for Economic Development’.

“The CBN provided $10 million grant to the Bureau of Public Enterprises (BPE) which is what financed the entire privatisation process. In the interim, we provided long term fixed single digit interest rate funds for power investments by manufacturers.

“We’ve disbursed over N109 billion to 20 companies and I believe we added about 500 mega watts of electricity generation capacity to this country,’’ he said.
Sanusi said the apex bank had reviewed potential guidelines recognising longer time formation for asset quality. He also said that the CBN, in collaboration with the Ministry of Finance, was working to review the development financing institutions to create one institution that can finance development. Sanusi said that lending for privatisation was the first step, but “the only way loan gets back to the banks will be if investment are made in the other value chain’’.

“If a bank puts money to fund a generating plant and the plant does not have gas, does not produce power, it will end up with a bad loan. Therefore, we need to look at all the investment going into gas, generation, metering, and transmission.

“I hope we recognise this as an important first and final step in financing the power sector,’’ he said. Also commenting on bank lending to the power sector, Mr Andrew Alli, President African Finance Corporation, said the organisation had been the technical adviser to the CBN on power and aviation sectors intervention fund since the inception of the fund.

He said the corporation had disbursed about N226 billion to projects in both sectors with about N110 billion going into 23 unit power projects financed by eleven banks.

Alli said about seven projects were still waiting for disbursement from another six banks with total financing value of about N12 billion. He named some of the sponsored projects to include Akute, an independent power plant that provides power to Lagos State, Dangote Cement in Obajana and Igbeshe and WABCO Nestle, among others.

“In terms of impact, we have financed about 790 megawatts, almost 800 megawatts of power, which is equivalent to 25 per cent of the power generated on the national grid,’’ he said.

Blesyn014: No one disbursed for ASUU?

VoteOutPDPJona: And PHCN workers are protesting over unpaid severance package as agreed upon with the federal government. Aftermath of president Jonathan handing over PHCN to private investors with just 25% of PHCN staff paid off. If in doubt, ask PHCN workers in Jos, Plateau state.

gare:

Well would not believe that story of yours do you have any proof to your statement above?

And this phcn people have held us hostage for so long they should go or else we will force them out by force,they are criminals and we are tire of them we need new hands your saw what happened to NITEL now we are all happy.

If we continue to give in to thier cheap. Blackmail then we will not move on.

joshua idibia: D mago mago N302BN of NNPC plus dis N109BN is equal N411BN. and all we're askn fr N400BN to gt bk to sch. Nawa o. Hapy independence my blak a$$

Blesyn014: No one disbursed for ASUU?

Afolabs101: Most of these loans were given to captive clients where the electricity that will be produced will not go to the National Grid. Akute/Lagos State is for Lagos State government sites, Dangote's is for his factories, same with Nestle etc.

In order for the masses to feel an improvement, we'll have to wait some time. Here's why:

1- The gencos and discos that were privatized were bought over by people using debt rather than their equity. Basically these consortiums took huge loans to pay for these privatized assets.

2- This means that before they can raise funding for upgrade and expansion, they'll need to liquidate the loans they took to buy the assets. We should be looking at 4 to 8 years before that happens.

What should happen is the consortium buy the asset with their own equity, then they can take loans for development against the asset they have bought. So that upgrading can start as soon as they take over. Or government should have offered them a long payment plan.

otokx: That money should have been disbursed to 20 federal universities for the construction of lecture halls.

otokx: That money should have been disbursed to 20 federal universities for the construction of lecture halls.

manny4life:

One word: RUBBISH

Afolabs101:

I work for the institution that manages the Power and Aviation Intervention Fund (PAIF) so I have first hand information. If you want to refute my points, put up an argument.

It's extremely childish to just say "rubbish" with absolutely no rebuttal or opposing view.

otokx: That money should have been disbursed to 20 federal universities for the construction of lecture halls.