The Power Distribution Companies (Discos) has on Wednesday affirmed they were only able to access N58 billion from the Central Bank of Nigeria’s N213 billion credit facility out of the N1.8 trillion intervention fund injected into the sector.
The alleged intervention fund spent by the Nigerian government on the power industry in the 7-year period between 2013 (when the privatisation exercise was consolidated) and 2020 is currently undergoing an investigative hearing at the National Assembly.
According to the Chairman of the Senate Committee on Power, Gabriel Suswan, funds in the sums of N701 billion, N600 billion, N380 billion and N213 billion had been supposedly released as interventions in the power sector in the last 7 years.
The Discos claimed that the N58 billion was being repaid monthly, saying no free money had been given to them by government.
While speaking on the issue, Sunday Oduntan, Executive Director of Research and Advocacy, Association of Nigerian Electricity Distributors, stated that the clarification was to correct the impression that power sector operators (Discos inclusive) had received N1.8 trillion from the Nigerian government since the sector was privatised.
“The Discos have only partaken in the N213bn NEMSF facility, which is being deducted every month at source by CBN with about 10 per cent interest rate for 10 years,” he said.
The Senate had on Monday revealed that a total sum of N4.4 trillion had been injected into the Nigerian power industry in the last 21 years while poor power supply cost the country an estimated $29 billion every year.