The Federal Government has obtained a $500 million loan from the World Bank to enhance electricity distribution in Nigeria. Amina Othman, Head of Public Communication at the Bureau of Public Enterprises, announced this on Thursday in Abuja. The loan aims to address challenges faced by Distribution Companies (Discos) in the country.
Approved on February 4, 2021, by the World Bank board of directors, this funding supports the Nigerian Distribution Sector Recovery Programme (DISREP), designed to improve the financial and technical performance of Discos. DISREP focuses on capital investment and financing key components of the Performance Improvement Plans approved by the Nigerian Electricity Regulatory Commission.
The loan will be used for bulk procurement of customer/retail meters, meter data management systems, a Data Aggregation Platform, and to strengthen governance and transparency within the Discos. The programme has two main components: $345 million allocated to the Programme for Results, implemented by the Bureau of Public Enterprises, and $155 million for Investment Project Financing, aimed at procuring meters, a data aggregation platform, and providing technical assistance.
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The DISREP loan, particularly the Investment Project Financing component, is expected to significantly benefit the Nigerian Electricity Supply Industry by closing the metering gap, reducing Aggregate Technical, Collection, and Commercial losses, and improving remittances and liquidity for the Discos. Additionally, it aims to enhance power supply reliability and increase transparency and accountability within the Discos.
