Power distribution companies in the country on Monday said
part of the N201.6bn Central Bank of Nigeria loan reflecting on their accounts
had been an impediment to their ability to borrow money to finance capital
projects.
According to them, the CBN’s N152.16bn loan reflecting on
their accounts has blocked their access to additional funding from commercial
banks.
Speaking under the aegis of the Association of Nigerian
Electricity Distributors, the umbrella body for the Discos, the power firms
said the loan, which was tagged: ‘Nigeria Electricity Market Stabilisation
Fund’, was for the payment of gas and other legacy debts incurred before
private investors took over the assets of the defunct Power Holding Company of
Nigeria on November 1, 2013.
The Director of Research and Advocacy, ANED, Mr. Sunday
Oduntan, said a breakdown of the loan showed that only N58.45bn, or about 27.8
per cent, was designated for the Discos, while the balance of N152.16bn was for
the power generation companies, gas suppliers and other service providers.
The loan, he said, would be repaid in bits during a 10-year
period by the beneficiaries.
Oduntan noted that of the amount designated for the Discos,
only N49bn had been received by some of the firms out of the N120bn disbursed
by the CBN since it commenced disbursements in 2015.
He lamented that although the N152bn balance was not for the
Discos, the financial books of the electricity retailers bear the debt burden.
“The debt encumbrance is a significant impediment to the
Discos’ ability to borrow money to finance their capital investments and their
financing of the entire value chain,” Oduntan explained in a statement issued
in Abuja.
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