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