Friday, 15 August 2014

Bankers Committee to clear N25bn gas debt




 The Bankers Committee, yesterday, said it would help the privatised power firms clear N25 billion debts to gas producing companies. The Committee had also decided to provide funding support to the 18 rice milling companies across the country so as to boost local production, reduce foreign exchange spent on rice importation and boost job creation. These were the highlights of the 317th meeting of the Committee in CBN Lagos office, yesterday. The Bankers Committee comprises the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation and chief executive officers of banks. Speaking to journalists after the meeting, Managing Director/Chief Executive, Ecobank Nigeria Limited, Mr. Jibril Aku said that the Committee decided to set up a Special Purpose Vehicle, SPV, that would be used to clear the debt. He  spoke in company of the Director of Banking Supervision, CBN, Mrs. Tokunbo Martins, Managing Director/Chief Executive, Skye Bank PLC, Mr. Timothy Oguntayo and the Managing Director/Chief Executive, Access Bank Plc, Mr. Herbert Wigwe
Aku noted that though the N25 billion was inherited by the power firms from the PHCN legacy firms, it had become a challenge to increasing gas supply for power generation. He said: Today, there is enough incentives for the gas companies to produce gas and that is necessary because when you look at the 26 generating stations in Nigeria, they are all gas dependent. So, we feel, that is one major incentive that would help the gas companies to begin to produce locally.
Vanguard Newspaper

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