Nigeria’s power sector has gulped an estimated N2.3 trillion in intervention fund since it was first initiated in 2015.
This is contained in a report from CBN covering a detailed assessment of the N10.3 trillion developmental finance between 2015 to 2022. Nairametrics obtained a copy of the report.
The report shows the apex bank has injected over N2.3 trillion in its attempt to help improve power supply as well as increase metering in the sector.
Despite this, power supply remains in a bad shape with outages and prolonged supply cuts prevalent in the country. Metering gap also continues to grow with NERC saying about 58% of customers are without meters.
What the report is saying
A breakdown of the amount loaned to the sector include several schemes over the years such as the NEMSF 1-3, NMMP, PAIF, NBET PAF, SCF, and IFNGEP. The acronyms represents several intervention funds to the sector.
NEMSF
The loan which was disbursed under the Nigerian Electricity Market Stabilization Facility intervention project aimed to increase electricity capacity from 3,400MW to approximately 4,900MW.
- The NEMSF also known as the Nigeria Electricity Market Stabilization Facility (NEMSF) was created to help pay off legacy debts and revenue shortfall during the Interim Rules Period (Nov 1, 2013 – December 2014). The total amount disbursed under it was N195.6 billion
- However, it was extended in 2020 to include Critical infrastructure upgrade by DisCos with another N273.2 billion earmarked.
- Another NEMSF 3 was initiated in 2022 with about N86.6 billion disbursed. This was meant targeted at improving TCN’s Transmission/Distribution (Tx/Dx) Networks.
Details indicate about N160 billion has been repaid by the sector out of the N555 billion combined amount disbursed. The report also indicate the loans are performing as it is being serviced adequately.
NMMP
The NMMP which stands for the National Mass Metering Plan was targeted at closing Nigeria’s metering gap and eliminate arbitrary estimated billing.
- Key stakeholders who benefited from this facility are the DisCos, and Meter Asset Providers.
- Total loans disbursed under the scheme was captured at N53.3 billion all funded by the central bank.
- About N3.4 billion has been repaid while N1.3 billion is due and outstanding. Most of the loans are designated as performing.
- The loans financed the procurement of 962, 832 electricity meters, of which 883,511 has been installedAll 11 distribution companies benefitted from the scheme.
According to the report the impact of the facility improved monthly revenue collection by DisCos from N42 billion in 2020 to over N72 billion as at end-2022.
An estimated 4,691 jobs have been created so far through the NMMP via engagement of meter installers and technicians.
PAIF
The Power and Aviation Intervention Fund (PAIF) is a N317 billion funded created as far back as in 2010 to help fast track the development of the power and aviation sectors of the economy.
- Some of the beneficiaries of the loans include Dangote Cement, Azura Power, Lafarge, Ashaka Cement, Geregu Power and Geometric Power.
- The companies listed above have also repaid the loans according to the information contained in the report as seen by Nairametrics.
- In total N266 billion of the loans had been repaid
NBET
The Nigerian Bulk Electricity Trading Payment Guarantee Facility is a N1.3 trillion facility designed as a bridge facilty for settlement of legacy electricity generation invoices for GenCos & GasCos.
- Unlike the other intervention for the power sector, the loans were used to pay power generation companies, and gas providers.
- The money was required due to the shortfall in collection of Discos from their customers.
- The report claims the entire loan has been repaid.
Others
The other facilities listed in the report include the N7 billion disbursed Solar Connection facility which was used to expand energy access, and increasing local content in the off-grid solar energy value chain.
- It also included the Intervention Facility for National Gas Expansion Prohramme out of which N74.5 billion eas disbursed.
- The IFNGEP was used to fast-track the adoption of CNG as the fuel of choice for transportation and power generation, as well as LPG as the fuel of choice for domestic cooking, transportation and captive power.
- Despite this only N843 million has been repaid so far while N1.7 billion is due an unpaid but still classified as performing.