The decision by the Central Bank of Nigeria , to escrow the bank accounts of the nation’s eleven Distribution Companies may significantly reduce the huge debt in the power sector.
The sector is currently highly indebted to commercial banks, resulting in the taking over of one of the Discos, the Abuja Electricity Distribution Company by the creditors. For instance between July to December 2020, total revenue grew by 10.55 per cent to N272.47 billion as compared to 2019, when the revenue was N246.46 billion.
A former Managing Director of NBET, Rumundaka Wonodi, explained that while it is a temporary measure, the escrowing of Discos’ accounts has helped in ensuring some level of transparency in the sector. This is because the CBN’s Special Purpose Vehicles , Meristem, monitors all the Discos’ commercial banks through which every Discos revenue is remitted.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Osinbajo on Mali crisis: ECOWAS will not accept coups... our resolve is strongVice-President Yemi Osinbajo says the Economic Communities of West African States (ECOWAS) will not accept unconstitutional takeover of power.
Source: thecableng - 🏆 2. / 80 Read more »
Osinbajo: ECOWAS will not accept coups... our resolve is strongVice-President Yemi Osinbajo says the Economic Communities of West African States (ECOWAS) will not accept unconstitutional takeover of power. Hian Civilian rule and democracy is for African alone. Aridin
Source: thecableng - 🏆 2. / 80 Read more »
CBN may increase interest rate this year, says report - Punch NewspapersThe most widely read newspaper in Nigeria Confused people
Source: MobilePunch - 🏆 8. / 63 Read more »
FG excessive borrowing from CBN threatens exchange rate, others – ReportThe Federal Government’s excessive borrowing from the Central Bank of Nigeria through the Means and Ways Advances window can have adverse effects on the apex bank’s monetary policy and subsequently harm domestic prices and exchange rates. APC na looter's I swear !! Scam APC We continue to kick the can down the road. The way out is to broaden the tax base. The government budget is in naira, which taxation ought to fund. Means and ways are nothing but the devaluation of the naira (convert a few dollars to more naira to finance the budget deficit).
Source: MobilePunch - 🏆 8. / 63 Read more »
Capital importation falls by N1.68tn – CBN - Punch NewspapersThe most widely read newspaper in Nigeria
Source: MobilePunch - 🏆 8. / 63 Read more »
Mali Coup: ECOWAS leaders go tough; close all borders, recall ambassadors, freeze assetsThere is clear evidence that the international community will no longer accept unconstitutional takeover of government, Nigeria's VP says.
Source: PremiumTimesng - 🏆 3. / 78 Read more »