The Federal Government has received $64.63 million, about (N19.7 billion) from Niger and Benin Republics as payment for electricity supplied to them, the Minister of Power Works and Housing, Raji Babatunde Fashola, said yesterday.
He said, the Nigeria Electricity Bulk Trading Company (NBET) is expected to work out the modalities before onward distribution of the fund to the Electricity Distribution Companies (DisCos).
He spoke at the 21st Monthly Power Sector Ministerial /Stakeholders meeting in Asaba, Delta State. It was hosted by Benin Electricity Distribution Company (BEDC).
The minister had earlier commissioned the 215MVA Asaba sub-station transformer, which, he said, will reduce the incidence of load shedding in the area.
But speaking in the meeting, Fashola said: “I have some good news for you as well. Some money has come in form the power we sell to Benin Republic and Niger Republic; people wonder why this is so. They are a product of treaties and agreements.
“They also help our own economy. So we have a total of $64,630,055 that has been recovered. So, NBET will work out the modality for distribution. And hopefully by next month, you too, should be able to report that you have received an alert.”
The minister also announced that the Federal Executive Council had approved to resolve a meter contract dispute that it entered with a contractor since 2003, but the government’s approval last Thursday resulted in a court settle which implies that the contractor can now have N37billion plus the interest that accrued over the time for provision of meters to the DisCos.
Fashola urged interested DisCos to liaise with the ministry and contractor for supply of meters to their customers, adding that the deal is strictly between the contractor and the power firm while the ministry is only to make the facilitation with the meter supplier.
He however urged the parties to note that the agreements will reach on meter supply will be subject to the regulation that the Nigerian Electricity Regulatory Commission (NERC) is about to present.
He said: “But on a progressive note, I am also happy to report that the approval by the Federal Executive Council to resolve a meter contract dispute entered into since 2003, has now culminated in a court settlement that was concluded November 9.