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CBN in $1.3bn bailout to kick start Nigeria’s electricity recovery
Petroleum Minister Diezani Alison-Madueke announced on 19 September the creation of a N213bn ($1.3bn) lifeline intended to kick-start the reform process nearly a year after generation and distribution companies were handed over to private investors. This should pave the way for the declaration of the Transitional Electricity Market (TEM), at which point contracts signed between the generation companies, distribution companies and the offtaker Nigerian Bulk Electricity Trading Company (NBET) become active. Akindelano Legal Practitioners partner John Delano told African Energy: “the TEM is expected to be declared on 1 November tentatively. It has been delayed a couple of times but it appears there is now resolve within Nerc [Nigerian Electricity Regulatory Commission], the federal government and the bulk trader to make the PPAs [power purchase agreements] active”.
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