Banks Sabotaging Power, Other Intervention Funds – CBN

CBN
The federal government has set aside almost N1 trillion in intervention funds as a way of growing the nation’s economy, for businesses across all sectors of the economy. However, the Central Bank of Nigeria (CBN), has accused commercial banks of sabotaging the objectives of the respective intervention funds by not allowing their customers access to the funds, Leadership reports.
With respect to power, the CBN had, in June this year, disbursed the fourth batch of the Nigeria Electricity Market Stabilisation Fund (CBN-NEMSF), giving out N55.456 billion (out of the N213 billion set aside for it) to 24 industry participants: three electricity Distribution Companies (DISCOs), 14 electricity Generation Companies (GENCOs)- NIPP inclusive, one service provider, and six gas companies to further address the challenges in the power sector.
The deputy director of CBN, Monetary Policy, Dr Ngozi Egbuna, said only a handful of commercial banks in Nigeria had been instrumental in disbursing the intervention funds. Specifically, she said First Bank, Union Bank, Heritage Bank and a few others have been the ones disbursing the intervention funds dutifully. She noted that banks are not encouraging their customers to access the intervention funds for selfish gains as they would rather give out high-interest loans than the low-interest intervention funds.
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