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CBN Grants Banks Permission To Collect Revenue For Electricity

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The Central Bank of Nigeria (CBN) has issued guidelines to banks on revenue collections for electricity companies.

In a letter to all banks, which was signed by Bello Hassan, Director Banking Supervision, the CBN said; “banks providing Bank Guarantees to Nigeria Bulk Electricity Trading (NBET) Plc and the Transmission Company of Nigeria (TCN) on behalf of Distribution Companies (DisCos), would take full responsibility for: the collections of the concerned DisCos, and; the remittances of the DisCos to both NBET and TCN.”

For the avoidance of doubt, the letter noted that “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.”

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It also said the payment or settlement of all Nigerian Electricity Supply Industry (NESI) related goods or services shall be made through the Nigerian Banking System.

Consequently, it said “all collections for the payments of NESI regulated goods and services provided by a DisCo shall be paid into a designated account such that:

a. Collections arising from services rendered by the DisCo shall be paid into an account in the sole name of the DisCo;

b. 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).”

The letter also indicated that all energy and non-energy collections of DisCos, whether cash or cashless, shall only be performed by Deposit Money Banks (DMBs).

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“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, therefore:

a. The DMB shall be permitted to authorize its agents to collect energy and non energy payments on its behalf for any DisCo,

b. The actions or inactions of the agent shall be the responsibility of the authorizing DMB.”

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The information contained in this post is for general information purposes only. Opinion articles, comments are solely the responsibility of the author and does not necessarily reflect the views of BlazeNewz while we endeavour to keep the information accurate with objectivity as we adhere to global practice of journalism. Read our full Disclaimer.

Hammed Tajudeen is the editor in-chief of Blaze News, holds Higher National Diploma(HND) in Mass Communication, graduated from Osun State Polytechnic, Iree.

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