Only creditor banks can collect electricity tariffs ― CBN

Central Bank of Nigeria (CBN) has directed that only banks that had issued credit facilities to particular electricity distribution companies (DisCos) should henceforth collect tariffs on their behalf.

In a circular to all deposit money banks dated August 21, 2020, CBN said banks providing bank guarantees to Nigeria Bulk Electricity Trading (NBET) Plc and the Transmission Company of Nigeria (TCN) on behalf of DisCos, would take full responsibility for collections of the concerned DisCos, and remittances of the DisCos to both NBET and TCN.

“For the avoidance of doubt, no DMB is permitted to open or continue to maintain a collection account for a DisCo without the express no-objection of the DMB that guaranteed its exposure to NBET or TCN.

“The payment or settlement of all NESI related goods or services shall be made through the Nigerian Banking System. Consequently, all collections for the payments of NESI regulated goods and services provided by a DisCo shall be paid into a designated account.

It noted that collections arising from services rendered by the DisCo shall be paid into an account in the sole name of the DisCo; collections arising from services rendered by a third party/parties on behalf of the DisCo shall be paid into an account in the joint name of the DisCo and the third party vendor(s); and that all energy and non-energy collections of DisCos, whether cash or cashless, shall only be performed by Deposit Money Banks (DMBs).

CBN warned that no entity shall be permitted to collect revenues for DisCos except if that entity is so authorized by a DMB in line with the relevant CBN Guidelines for Agent Banking and Agent Banking Relationships.

“Any DMB found to be maintaining any account(s) for any entity collecting payments on behalf of any DisCo without appropriate authorization shall have regulatory sanctions imposed on it.”

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Nigeria’s Economy Shrank By 6.10% In Q2 2020 — NBS
NIGERIA’S Gross Domestic Product (GDP) in real terms declined by -6.10 per cent (year-on-year) in Q2 2020, thereby ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession. This is according to the second quarter (Q2) GDP report, released by the National Bureau of Statistics (NBS) on Monday. When compared with Q2 2019, which recorded a growth of 2.12 per cent, the Q2 2020 growth…

Mailafia Sues Police, Shuns Invitation
FORMER deputy director, Central Bank of Nigeria (CBN), Dr Obadiah Mailafia, has taken the Nigeria Police before the  Plateau State High Court, asking the court to restrain the police from inviting him to appear before the Deputy Inspector-General (DIG) Force Investigation Department, Police Headquarters, Abuja. After two consecutive invitations and interrogation by the Department of State Services (DSS) over his…

My Four Weeks Battle With COVID-19 —Segun Awolowo
While many people still express the belief that COVID-19 is just hype, the executive director of the Nigerian Export Promotion Council (NEPC), Segun Awolowo, while narrating his four weeks battle with the virus, has called on people to take the virus seriously, be conscious of the infection and follow laid down preventive measures, adding that fear is the real killer for infected people. Yejide Gbenga-Ogundare reports…

Mali Junta Wants 3-Year Military Rule, Agrees To Free President
THE junta that seized power in Mali wants a military-led transitional body to rule for three years and has agreed to release ousted president Ibrahim Boubacar Keita, a source in a visiting West African delegation said Sunday. “The junta has affirmed that it wants a three-year transition to review the foundations of the Malian state. This transition will be directed by a body led by a soldier, who will also be head of state,” a source in the…