The Central Bank of Nigeria has suspended until further notice its disbursement of N213 billion in bailout funds to the electricity generation companies (Gencos) and distribution companies (Discos).
The Governor of the Central Bank of Nigeria (CBN) said this in Lima, Peru, while addressing newsmen on the general issues affecting the Nigerian economy.
“Not all funds have been disbursed to the electricity companies because of the issues we need to trash out with the Nigeria Electricity Regulatory Commission (NERC) and the Nigeria Bulk Electricity Commission (NBEC)” he told journalists.
According to the Governor, the bailout fund, which was meant for the upgrade of electricity equipment and replacement, has been of great help for beneficiaries but some things needed to be resolved before the bank continues to release the funds.
About N58bn out of the total N213bn has so far been disbursed to some Discos and Gencos. The loan has a repayment spread of 10 years, at 10 per cent interest rate.
The Governor also said more intervention is likely in the transmission network to complement the generation effort of the electricity companies.