The Central Bank of Nigeria (CBN) has earmarked N18.58 billion worth of credit to Electricity Distribution Companies (DisCos) to procure 347,853 electricity reading meters and enhance regular power supply in the country.
This was disclosed by the CBN in its Communique of the Monetary Policy Committee and signed by the Governor, Godwin Emefiele, on Tuesday.
According to the document, the facility was given in support of the Federal Government’s National Mass Metering Programme (NMMP).
It stated, “The Bank has so far, provided N18.58 billion for the procurement of 347,853 electricity reading meters to Discos in support of the National Mass Metering Programme.”
NMMP is a joint venture between the DISCOs and the FG to improve metering count in Nigeria’s Power sector, which would boost revenues and accountability for the DISCOs.
Under the new arrangement, distribution companies are expected to go from location to location with their respective Meter Asset Providers (MAP) to provide and install meters for their customers.
The meters would be manufactured by indigenous companies including Mojec International Limited and Momas Meter manufacturing company.
Recall that last week, the Federal Government announced that it had disbursed a total of N14.35 billion to DisCos to cover the procurement of 263,860 meters under the NMMP, according to Nairametrics.
The facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule.
The repayment is to be deducted from payments made by consumers into the DisCos accounts with Deposit Money Banks (DMBs).
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The maximum tenor of the facility is 10 years but not exceeding 2030, while the moratorium on the principal amount is for a period not exceeding 24 months from the date of loan disbursement respectively.