For banks participating in the N213 billion power sector financing, the Central Bank of Nigeria (CBN) has warned that acts of sabotage would be followed with commensurate penalties.
The CBN, therefore, listed 18 infractions, which it circulated yesterday to banks participating in the scheme.
This action of the apex bank intended to remove bottlenecks responsible for low power generation.
Some participating banks are yet to fulfill their December 22, 2014 agreement with the apex bank with regards to releasing funds to generating and distributing companies by the first week of last year.
This situation is therefore frustrating investors plan to upgrade their processes aimed at effective and efficient delivery of electricity.
In a circular titled: “Sanctions Grid to Deposit Money Banks that participate under the CBN – Nigeria Electricity Stabilization Facility (CBN-NEMSF)” by its Director in charge of Financial Policy and Regulation Department, Mr. Kevin N. Amugo outlined penalties-ranging from warning, to fines to the tune of N500, 000 daily-for infractions.
Fourteen money deposit banks are participating in the refinancing scheme, in which the World Bank offered to guarantee $1.75 billion lifeline, representing a total of $7 billion budgeted for Nigeria over a four-year period.
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