The much famed N701.9 billion Payment Assurance Fund (PAF) meant to provide more liquidity for Generation Companies (GenCos) to pay for gas and increase electricity supply, has not been released five months after it was announced, Daily Trust reports.
The Minister of Power, Works and Housing, Mr Babatunde Fashola, while berating the 11 Distribution Companies (DisCos) for their poor payment of energy bills at the 15th Power Sector Meeting in May 2017, said the fund saved the grid from crashing the GenCos that couldn’t pay for gas to generate power.
Details available indicate that the fund from the Central Bank of Nigeria (CBN), announced in March by Fashola, is for the Nigerian Bulk Electricity Trading Plc (NBET) to bridge GenCos’ liquidity issues from January 2017 to 2019 to ensure more gas supply and increased power generation.
In an interview with Daily Trust in June 2017, the minister said the payment had commenced with visible improvement in power generation. “The payment has commenced and that is why you see we are around 4,000 megawatt (mw) now,” he had said.
Daily Trust, August 22, 2017
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