How CBN escrowing of DisCos’ account reduces liquidity in NESI — Nigeria — The Guardian Nigeria News – Nigeria and World News

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Emefiele. Photo/TWITTER/CENBANK

Stakeholders Demand Improved Electricity Supply Following Revenue, Remittances Increase 

Unless the Distribution Companies and other stakeholders in the Nigerian Electricity Supply Industry (NESI) address bottlenecks hindering adequate revenue collection, financial discipline introduced by the Central Bank of Nigeria (CBN) may not achieve sustainable solutions.

Privatised in 2013, the power sector, aside from failing to perform, has been in financial crisis, requiring perpetual intervention fund from the government.

Last year, CBN directed Deposit Money Banks to take charge of the collection of electricity bill payments. A circular signed by Hassan Bello, director of banking supervision had linked the move to the recommendation of the Power Sector Coordination Working Group to improve payment discipline in the Nigerian Electricity Supply Industry (NESI).

Recall that the Distribution Companies (DisCos) are responsible for the sector’s revenue…



Source: Guardian Newspaper