•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.
CBN also directed money deposit banks to take charge of the collection of electricity bill payments. The move, which, reportedly would ensure payments are made into a dedicated account and disbursed depending on priority, beginning with loan repayment and service charge to TCN, was backed by the Power…
Source: Guardian Newspaper