Electricity distribution companies in the country are expected to repay in four months N9.96bn of the debts owed to the Central Bank of Nigeria.
Recall earlier, the CBN introduced a N213bn intervention fund, called the Nigeria Electricity Market Stabilisation Facility.
The Nigerian Electricity Regulatory Commission, in its Multi-Year Tariff Discos Order gave the power firms minimum remittance thresholds with respect to the CBN loan.
The Electricity Distribution Company is expected to repay N1.65bn from September to December; Benin Disco, N1.47bn; Abuja Disco, N1.45bn; Ibadan Disco, N1.25bn; and Kaduna Disco, N1.01bn.Port Harcourt Disco is expected to repay N1bn; Jos Disco, N789m; Ikeja Disco, N526m; Kano Disco, N508m; and Eko Disco, N293m.
Yola Disco has the lowest payment obligation of N17m in the four-month period. According to the NERC commission, all the Discos are obligated to settle their market invoices in full and failure to meet the minimum remittance requirement in any payment cycle in accordance with the terms of its respective contracts with the Nigerian Bulk Electricity Trading and the Market Operator, an arm of the Transmission Company of Nigeria would lead to serious penalty.
