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Nigeria’s Central Bank (CBN) is working with Nigeria’s Electricity Regulatory Commission (NERC) to ensure the complete disbursement of the US$1bn power fund over the next three weeks
The money will be used to resolve a pile of legacy debts, and empower distribution and power generation companies to produce more power in Nigeria, said CBN officials. So far, around US$281mn has been disbursed to some generating companies (GENCOs) and distribution companies (DISCOs).
According to CBN governor Godwin Emefiele, the disbursement “slowed down”, due to the reversal in the tariffs, and that CBN is engaging with the NERC to resolve the matter soon.
In 2014, the NERC had set renewed terms and conditions to be adhered to by operators in the Nigerian electricity market that are eligible to benefit from the US$1bn power fund, as the new terms were necessary to guarantee accountability and efficient fund disbursement.
According to Emifiele, the disbursement is needed as the lack of power was beginning to affect the West African nation’s economic growth.