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FG intervenes in energy sector with N600b boost

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Issues N60b bond

PRESIDENT Muhammadu Buhari has given an approval for the release of N600 billion to the energy sector as part of federal government’s new intervention to step up power generation and transmission in the country.

The approval is coming within one week after Vice President Yemi Osinbajo had called for a new strategy in tackling challenges that persist in the power sector where, he lamented, the power distribution companies had performed below expectations in delivering power for both household and industrial electricity consumption.

Market Operator of Transmission Company of Nigeria (TCN), Edmond Eje, disclosed this development yesterday in Abuja while speaking on the sidelines of the third interactive stakeholders’ forum.

According to Eje, the plan to release the fund is already at an advanced level.

Similarly, federal government has floated about N60 billion bonds for the three tenors offered to various investors who subscribed at the auction.

This is contained in a release issued by Debt Management Office (DMO) in Abuja yesterday, disclosing that it has issued a total of N59.53 billion FGN bonds.

According to the release, DMO offered N40 billion for the five-year, N50 billion for the 10-year and N55 billion for the 30-year bonds. Total subscriptions received from both competitive and non-competitive bids amounted to N139.58 billion, with demand for the 30-year bond remaining strong as has been the trend since the instrument was introduced to the market in April while total subscription for the bond at the auction stood at N64.71 billion.

DMO further stated that allotments were made to successful bidders at the rate of 14.290 percent for the five-year, 14.390 percent for the 10-year and 14.590 percent for the 30-year bonds.

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