Power firms urge CBN to sustain its foreign exchange interventions
In response to the rising value of the Naira in the Foreign exchange market, most especially the dollar, the Power firms have urged the Central Bank of Nigeria (CBN) to sustain its foreign exchange intervention in the financial market.
The Managing Director and Chief Executive Officer of Copperbelt Energy Corporation, one of the core investors in Abuja Electricity Distribution Company, Mr. Emmanuel Katepa, said that things were tough for many power distribution companies with respect to accessing forex prior to the intervention of the Central Bank.
He said, “The interventions by the CBN are very significant and commendable. Before the interventions, things were very tough for many Discos including our company. But with the interventions, we believe things should become mild.”
“What we have now is not cost-reflective. However, as operators, we recognise that a proper ýcost-reflective tariff right now in Nigeria will create a disturbance, because prices would have to jump up. This will leave us where our ability to collect revenue will be affected, because you cannot negotiate beyond certain point where consumers simply cannot pay; so we recognise that reality.”
The value of the Naira though dropped when exchanged against the Dollar as it closed as 383 Naira per dollar against 380 Naira per Dollar which it was exchanged for yesterday.
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