From Dennis Mernyi, Abuja
POWER sector stakeholders including the generation and distribution companies as well as some government officials involved in the disborsement of the N213 billion bond granted them by the immediate past administration in 2014 following the privatisation programme, may soon be asked to explain how the intervention fund was used.
The planned probe of the power sector intervention fund followed the recent request by the electricity generation and distribution companies for an additional N309 billion loan from the Federal Government to help them stabilise power supply.
But the request had hit the brick wall at the National Assembly, which felt that power sector managers were unable to explain how the initial N213 billion granted them by President Goodluck Jonathan to help them improve power generation and distribution across the country was utilised. The federal law makers had argued that the fresh request for N309 billion loans was uncalled for as power supply across the country has further degenerated. While approving the facility in 2014, government had explained that the fund was to enable the firms kick start immediate operation having discovered that most of the entities they bought were really in very bad shape.
The arguments against thepower companies was that, as new players in the sector who went through the processes including the bidding process and due diligence to emerge owners of the companies, should have adequate financial capability without taking loans from any organisation apart from their bankers.
However, these, among many other views, were not considered by the government as the Central Bank of Nigeria (CBN) was directed to release the funds to them. The money was released in tranches.
Consequently, investigation into the utilisation of the N213 billion intervention fund has already been committed to Committees on Power, Privatisation and Commercialisation, Aids, Loans and Debts Management. The CBN has disbursed a total sum of N18.26 billion to the first batch of beneficiaries of the N213 billion Nigeria Electricity Market Stabilisation Facility (NEMSF).