The Federal Government has granted a soft loan of N5.06 billion to Yola Electricity Distribution Company.
This was disclosed by Sale Mamman, the Minister of Power, during the distribution of 85,367 Prepaid Meters on Thursday in Yola.
Mamman said the loan was part of intervention of the Central Bank of Nigeria for the provision of long term low interest funds to the Discos.
He said: “I am happy to inform you that the federal government has granted Yola Distribution Company a soft loan of N 5.061 billion.
“The loan is for sourcing of 85,367 meters comprising 62,324 single phase and 23,057 three phased meters under phase zero of the National Mass Metering Programme.
“I urge the management of the YEDC to make good use of this facility to significantly reduce its Aggregate Technical Commercial and Collection losses.”
Mamman noted that the losses had negatively affected the revenue stream of the company, as well as improve electricity supply to their esteemed and valuable customers.
According to the minister, the distribution of the meters is part of the intervention policy of the Federal Government towards closing the metering gap in Nigerian electricity supply Industry.
He said the occasion was a clear testimony of YEDC’s commitment to providing its customers with enhanced service delivery.
He noted that the country’s electricity market, for many years, struggled with inadequate revenues, thus creating significant liquidity challenges in all its value chains.
Mamman said: “One of the major contributors to the funding challenge is the low level of metering for customers.
“This is the principal reason for customers resistance to payment of electricity bills due to the perceived lack of confidence and trust in estimated billing.
“The often repeated reason for the low level of metering has contributed to the inability of Distribution Companies to raise financing for the purchase of meters.”
He commended the Federal Government under the leadership of President Muhammadu Buhari for supporting the Discos with the much needed financing for bulk acquisition of meters.
The Yola Disco, serves Adamawa, Borno, Yobe and Taraba States.
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