FG Secures N54.5bn for NBET

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed on Thursday at the headquarters of the NBET in Abuja preceding to a meeting with the board members that the Federal Government has secured additional N54.5bn for the Nigerian Bulk Electricity Trading Plc in a bid to improve the organisation’s power purchase abilities.

According to the government, the fund is in addition to the provision for the bulk trader in the 2014 budget

She said, “Basically, we are here for a regular board meeting where we consider very serious issues. As you know, the bulk trader has just been very well reformed to be able to carry out its intermediary market role in the power sector. The bulk trader, in addition to the resources that it has from the budget, has also received $350m as a liquidity facility, which is being managed for it by the Sovereign Wealth Fund. The $350m is fresh from the Eurobond and we gave it to the sovereign fund to manage.”

The Minister explained that the board members were meeting in other to catch up on the activities of the bulk trader and that they are elated because the bulk trader has also been working on a very remarkable Greenfield project; the Azura Power.

On why the Nigeria Investment Sovereign Authority was asked to manage the funds of the bulk trader, the minister said it was for the purpose of generating returns to offset the interest on the loan.

She said, “You recall that most of the Eurobond was taken to support the power sector.