CBN moves to sanction banks over power intervention fund

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The Central Bank of Nigeria has unveiled sanctions grid to Deposit Money Banks participating in the disbursement of the N213bn Nigeria Electricity Market Stabilisation Facility, popularly called power sector intervention fund. The sanctions were contained in a five-page circular posted on the CBN website on Monday.

The circular, dated September 1, 2016, was signed by the Director, Financial Policy and Regulation, CBN, Mr. Kevin Amugo. For various offences that may be committed by the banks participating in the CBN-NEMSF programme, the sanctions range from a penalty of N0.5 million to N10 million fine and or termination of the DMB participation as a mandate bank.

The infractions listed on the circular include: failure by the DMB to provide statement of accounts maintained by the electricity distribution companies to the refinancer/administrator; allowing revenue to be paid into a bank accounts different from the Feeder Collection Accounts; and allowing withdrawals or debits from the Feeder Collection Account by a non-Principal Collection Account.

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