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CBN directive on collection yields successes
- DisCo collection on the rise
- DMB authorised to take over revenue collection
The Central Bank of Nigeria (CBN) circular authorising the Deposit Money Banks (DMB) to take over the collection of Distribution Companies’ (DisCos) revenues has recorded successes. The directive issued last year by the Director of Banking Supervision, Mr. Bello Hassan, stated that “All energy and non-energy collections of Discos, whether cash or cashless shall only be performed by deposit money banks (DMBs)”.
The directive began to yield results in September 2020, a month after it was issued. According to data obtained from the Association of Nigerian Electricity Distributors (ANED), the sector recorded the highest collection. “The Discos are back on track on their performance improvement after the fall due to the pandemic. Indeed, in September 2020, Discos’ collection reached a new record of ₦44.5 billion”, the data shows.
The CBN through its directive sought to have full visibility of the industry’s cash flow. The directive stated that “the payment or settlement of all NESI related goods or services shall be made through the Nigerian banking system”. The directive further stated that any DMB found contradicting the directive will be sanctioned. “Any DMB found to be maintaining any account(s) for any entity collecting payments on behalf of any Disco without appropriate authorisation shall have regulatory actions imposed on it”, as stated in the directive.