The Managing Director and Chief Executive Officer of Nigerian Bulk Electricity Trading Company, NBET, Dr. Nnaemeka Eweluka, has said that the Central Bank of Nigeria, CBN, played critical role in stabilizing the Nigerian Electricity Supply Industry, NESI.
Dr. Eweluka noted that the CBN through its critical interventions in the power sector has performed a very positive role in trying to sort out the electricity market challenges.
Recall NBET, the off taker agency recently organized a two-day capacity building workshop for journalists covering the sector under the Power Correspondents Association of Nigeria, PCAN, and Civil Society Organisations, held at Lagos Continental Hotels, Victoria Island, Lagos.
Eweluka explained further that the apex bank working in collaboration with the Transmission Company of Nigeria, TCN, and the Electricity Distribution Companies, DISCOs, was able to identify critical projects if quickly addressed would restore normalcy and increase production and supply of electricity.
According to him, “So basically what happened was that the Central Bank of Nigeria, CBN, has actually performed a very positive role in trying to sort out this electricity market challenges.
“So what happened was that CBN working with Transmission Company of Nigeria, TCN, and the Electricity Distribution Companies DISCOs, CBN basically asked what are those critical projects that if they are addressed today can quickly yield results in the sector.
“This is even as the Federal Government government is doing this Siemens project and TCN is implementating the report, what are those critical projects that if they are done today, will unlock additional megawatts quickly.
“And so the DISCOs and TCN worked together to come up with a list of some critical projects and I can’t be specific on the amount, maybe we can furnish that subsequently but that is what is happening.
“CBN decided to find those critical interventions so that there can be some quick wins even as the bigger project is being implemented, let’s have some quick wins that will have impacts on the lives of Nigerians.”
On the issue of recouping DISCOs’ debts, Eweluka, the renowned technocrat, said, “Now some of these are being handled.”
“These committees that I mentioned, I noticed that this is just not an NBET issue, there are enforcement mechanisms that will reside in about, for about five different agencies that I mentioned earlier, NBET is there, we have our vesting contract.
The Bureau of Public Enterprise, BPE, signed performance agreements with these different DISCOs where they are also committed to giving certain things or face consequences.
“NERC issues their licences again with the commitment for them to meet licence conditions as well as regulatory orders or face consequences.
“The Market Operator, MO, that administers the market rules, again the market rule makes it clear that every market participants must meet certain obligations or face consequences.
“Now what we are doing is to, because we have seen that there is risk in having these different agencies acting without coordination, we said no.
“There is a meeting that will happen shortly because what we said is that let us have a coordinated way of dealing with DISCOs’ default.
‘I think it was today or was it yesterday that somebody mentioned about the business continuity because there are different tools that resides within government for dealing with non-performance.
‘And so what we are looking at is coordination of consequence management and in consequence management so we are looking at having a coordination of consequence management within the sector amongst all the players that interface with DISCOs.”
Watch Leakblast TV channel from around the world
SUPPORT LEAKBLAST JOURNALISM OF INTEGRITY AND CREDIBILITY
Good journalism costs a lot of money.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble Endeavor.
By contributing to LeakBlast, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.