CBN Bars Importation of Meters, Releases Guidelines for Mass Metering Financing Programme
The Central Bank of Nigeria (CBN) Monday released guidelines for those wishing to access funding for mass metering programme in the country.
The apex bank also barred importation of fully assembled meters as well as infrastructure for this purpose outside what exists currently.
The latest effort according to the bank in a statement was to address issues of funding of 10 million metering of electricity users in the country.
According to THISDAY report the CBN financing scheme is aimed at increasing the rate of metering in Nigeria, “eliminate arbitrary estimated billing and strengthen the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity”.
Among other objectives of the programme, according to the bank was to “support Nigeria’s economic recovery by creating jobs in the local meter value chain, reducing collection losses and increasing financial flows to achieve 100 per cent market remittance obligations of the Distribution Companies (Discos)”.
According to the Bank, this measure would improve network monitoring capability and availability of data for market administration and investment decision making.
On importation of meters and infrastructure associated with it, the bank said, “Procurement of fully assembled meters from overseas is prohibited except meters imported by Meter Asset Providers (MAP) already in the country as at September 30, 2020, and verified by NERC.
“And importation of related metering infrastructure that is currently being produced in the country is also prohibited.”
The apex bank said the financing support which is for manufacturers of meters would be restricted to procurement and deployment meters and associated infrastructure.
The bank said, “As part of the bank’s COVID-19 relief package, the interest rate to be charged up to 28th February 2021 shall not exceed 5 per cent per annum. Interest shall be payable by the loan beneficiaries in accordance with the approved repayment schedule outlined in the transaction documents.
“The “all-in” interest rate of nine per cent to be shared as follows: Participating Financial Institution (PFIs) – six per cent while sponsor (CBN) will pay- three per cent.
“PFIs are to remit the interest due to the CBN on a quarterly basis not later than 10 days after the end of the quarter.”
The CBN statement came as the federal government said Monday it has concluded plans to deregulate Nigeria Electricity Supply Industry (NESI) as obtains in the downstream oil sector.
Minister of Power, Mr. Sale Mamman, during a virtual meeting organised by Siemens Energy, Germany, said the era of government full funding of power supply was over.
Mamman who was represented by the Minister of State, Power, Mr Goddy Jedy-Agba, said, “In the past, the power system was state-controlled, leading to low participation. But with market restructuring, that is changing and that is with less rigid control by the government.
“The central strategy in the power sector due to the severe inadequacy of infrastructure is thus a significant development, which is hinged on harmony and active participation of various public and private stakeholders in the industry.
“Further down the line, the market will still evolve towards complete deregulation and more commercially focused partnerships, further emphasising this harmony between the public and private sector and sustainability of the industry.”
The Minister said the partnership with Siemens will improve electricity supply in the country.
He added, “This is targeted at delivering 30,000,000 watts of electricity with a 30 per cent renewable energy mix by 2030.
This is a key focus of our strategy to avail Nigeria of reliable power supply.”
The apex bank also barred importation of fully assembled meters as well as infrastructure for this purpose outside what exists currently.
The latest effort according to the bank in a statement was to address issues of funding of 10 million metering of electricity users in the country.
According to THISDAY report the CBN financing scheme is aimed at increasing the rate of metering in Nigeria, “eliminate arbitrary estimated billing and strengthen the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity”.
Among other objectives of the programme, according to the bank was to “support Nigeria’s economic recovery by creating jobs in the local meter value chain, reducing collection losses and increasing financial flows to achieve 100 per cent market remittance obligations of the Distribution Companies (Discos)”.
According to the Bank, this measure would improve network monitoring capability and availability of data for market administration and investment decision making.
On importation of meters and infrastructure associated with it, the bank said, “Procurement of fully assembled meters from overseas is prohibited except meters imported by Meter Asset Providers (MAP) already in the country as at September 30, 2020, and verified by NERC.
“And importation of related metering infrastructure that is currently being produced in the country is also prohibited.”
The apex bank said the financing support which is for manufacturers of meters would be restricted to procurement and deployment meters and associated infrastructure.
The bank said, “As part of the bank’s COVID-19 relief package, the interest rate to be charged up to 28th February 2021 shall not exceed 5 per cent per annum. Interest shall be payable by the loan beneficiaries in accordance with the approved repayment schedule outlined in the transaction documents.
“The “all-in” interest rate of nine per cent to be shared as follows: Participating Financial Institution (PFIs) – six per cent while sponsor (CBN) will pay- three per cent.
“PFIs are to remit the interest due to the CBN on a quarterly basis not later than 10 days after the end of the quarter.”
The CBN statement came as the federal government said Monday it has concluded plans to deregulate Nigeria Electricity Supply Industry (NESI) as obtains in the downstream oil sector.
Minister of Power, Mr. Sale Mamman, during a virtual meeting organised by Siemens Energy, Germany, said the era of government full funding of power supply was over.
Mamman who was represented by the Minister of State, Power, Mr Goddy Jedy-Agba, said, “In the past, the power system was state-controlled, leading to low participation. But with market restructuring, that is changing and that is with less rigid control by the government.
“The central strategy in the power sector due to the severe inadequacy of infrastructure is thus a significant development, which is hinged on harmony and active participation of various public and private stakeholders in the industry.
“Further down the line, the market will still evolve towards complete deregulation and more commercially focused partnerships, further emphasising this harmony between the public and private sector and sustainability of the industry.”
The Minister said the partnership with Siemens will improve electricity supply in the country.
He added, “This is targeted at delivering 30,000,000 watts of electricity with a 30 per cent renewable energy mix by 2030.
This is a key focus of our strategy to avail Nigeria of reliable power supply.”
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