The Central Bank of Nigeria (CBN) has provided N18.58 billion worth of credit to Electricity Distribution Companies (DisCos) to procure 347,853 electricity reading meters and enhance regular power supply in the nation.

This was disclosed by the CBN in its Communique of the Monetary Policy Committee and signed by the Governor, Godwin Emefiele, on Tuesday.

According to the document, the facility was given in support of the Federal Government’s National Mass Metering Programme (NMMP).

It stated, “The Bank has so far, provided N18.58 billion for the procurement of 347,853 electricity reading meters to Discos in support of the National Mass Metering Programme.”

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NMMP is a joint venture between the DISCOs and the FG to improve metering count in Nigeria’s Power sector, which would boost revenues and accountability for the DISCOs.

Under the new arrangement, distribution companies are expected to go from location to location with their respective Meter Asset Providers (MAP) to provide and install meters for their customers.

The meters would be manufactured by indigenous companies including Mojec International Limited and Momas Meter manufacturing company.

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What you should know

Last week, the Federal Government announced that it had disbursed a total of N14.35 billion to DisCos to cover the procurement of 263,860 meters under the NMMP, according to Nairametrics.

The facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule. The repayment is to be deducted from payments made by consumers into the DisCos accounts with Deposit Money Banks (DMBs).

The maximum tenor of the facility is 10 years but not exceeding 2030, while the moratorium on the principal amount is for a period not exceeding 24 months from the date of loan disbursement respectively.

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Highlights of other CBN’s interventions

• Under the Bank’s real sector interventions, under the Anchor Borrowers Programme (ABP), N554.63 billion had been disbursed to 2,849,490 beneficiaries since the inception of the programme, of which N61.02 billion was allocated to 359,370 dry season farmers.
• In light of the on-going synchronized efforts by the monetary and fiscal authorities to mitigate the impact of the COVID-19 pandemic, the Bank has committed a substantial amount of money towards this objective. Indeed, total disbursements as at January 2021 amounted to N2.0 trillion.
• COVID-19 Targeted Credit Facility (TCF) meant for household and small businesses, wherein have disbursed N192.64 billion to 426,016 beneficiaries.
• We have also disbursed N106.96 billion to 27,956 beneficiaries under the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
• In the Health Care Support Intervention Facility, CBN has disbursed N72.96 billion to 73 projects that comprise 26 pharmaceutical projects and 47 Hospitals and Health Care Services projects in the country.
• To support the provision of employment opportunities for the Nigerian youth, the Central Bank of Nigeria also provided financial support through the Creative Industry  Financing Initiative and Nigerian Youth Investment Fund amounting to N3.12 billion with 320 beneficiaries and N268 million with 395 beneficiaries

International oil companies in Nigeria have expressed their fears that proposals in the long-awaited Petroleum Industry Bill (PIB) will discourage investment in new offshore projects.

They said that the bill, which is before the National Assembly for consideration and passage, is seen as unfavourable for deepwater projects, and urged the Federal Government to offer royalty relief programmes.

This disclosure was made by the Managing Director/Chief Executive of Total Exploration and Production Nigeria Limited, Mike Sangster, to the lawmakers during a public hearing on the PIB in Abuja, according to Bloomberg.

READ: PIB may be passed by first quarter of 2021 – Sylva

What the Managing Director of Total told lawmakers

Mike Sangster, in his statement, said, “Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favourable environment for future investments and for the launching of new projects.”

While speaking on behalf of the Oil Producers Trade Section (OPTS), a group of 30 oil producers that include Royal Dutch Shell, Exxon Mobil Corporation, Chevron Corporation and Eni SpA, which he also chairs, Sangster said that to encourage new investment, the proposed law should grant deepwater oil projects full royalty relief for the first 5 years, or a graduated royalty programme.

READ: NNPC GMD says AKK pipeline, Nigeria’s biggest gas project is 15% complete

Making a presentation on gas, Sangster said, “The PIB should provide a clear path for transitioning to a free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply.”

On the preservation of terms of existing investment, Sangster said, “We recognize the government’s right to change laws but the PIB must explicitly preserve rights. Operators should be allowed to retain the entirety of their lease areas and new terms should apply to new contracts, licenses and leases.”

He noted that Nigeria was facing growing competition for new investments, as the country was able to attract only $3 billion or 4% out of the $70 billion that was spent on new projects in Africa between 2015 and 2019.

READ: Oil firms’ debt status: How it affects Nigerian banks

What you should know

• The passage of PIB, which has faced a couple of setbacks for almost 2 decades, has been held up by political disagreement and objections from International oil companies who say that government is asking for an excessive increase in revenue.
• The bill seeks to introduce pertinent changes to the governance, administrative, the regulatory and fiscal framework of the Nigerian oil and gas industry in order to ensure transparency, strengthen the governing institutions and attract investment capital, among other objectives.
• The oil firms desire a critical look into their concerns about the PIB as at least half of Nigeria’s total crude output is from offshore oilfields, helping to offset declining production from mature onshore assets. But recent discoveries have remained undeveloped in the face of regulatory and legislative uncertainty.

READ: UK court dismisses $1.1billion Nigerian corruption lawsuit against Shell, Eni

The Federal Government is in talks to partner with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF) to transform critical power infrastructure and projects.

FG intends seeking technical support from the facility, focusing on power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.

This was disclosed by the Ministry of Power, after the Minister, Engr Salem Mamman, met with members of UKNIAF led by Program Lead for Power, Mr. Frank Edozie on Monday via its Twitter handle.

The Ministry of Power tweeted, “The Hon. Minister of Power @EngrSMamman held a meeting with members of the United Kingdom Nigeria Infrastructure Advisory Facility @ukniaf led by Program Lead for Power, Mr. Frank Edozie to discuss partnering to transform critical power infrastructure and projects.

“They discussed how the facility can be of help with providing technical support to @NERCNG, @TCN_NIGERIA, @realREANigeria & @nbetnigeria by focusing on, Power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.”

What it means

Aside from offering technical support to sector’s regulators and other agencies, the partnership, if it works, would help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’ which involves increased generation competition and limited retail competition.

What you should know

The Hon. Minister was joined by the Director, renewable energy resources Engr. Faruk Yusuf Yabo, his Special Adviser on Policy @abbaaliyu_, his Technical Adviser on Strategic Coordination Dr. Nurain Hassan @inhassan and his Technical Assistant on ICT & Digital Communications.