The Federal Government has secured a $500 million loan from the World Bank to enhance the financial and technical capacities of electricity distribution companies (Discos), aiming to improve power supply and efficiency across the sector.
The loan, obtained under the International Bank for Reconstruction and Development through the Presidential Metering Initiative, will fund the Distribution Sector Recovery Programme (DISREP). According to the Transmission Company of Nigeria (TCN), the initiative targets the implementation of Performance Improvement Plans for Discos to address pressing challenges, including technical inefficiencies and customer dissatisfaction.
The DISREP programme’s core objectives include reducing technical, commercial, and collection losses, improving service quality, increasing customer connections, and strengthening the ability to monitor and control network performance.
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Infrastructure Development and Metering
A significant portion of the funds will be allocated to upgrading infrastructure such as medium- and low-voltage distribution lines, increasing transformer capacity, and diversifying Discos’ commercial options to enhance their ability to meet electricity demand. The initiative also includes the bulk procurement of retail and customer meters and the implementation of meter data management systems.
TCN emphasized that this will not only address metering gaps but also regularize electricity usage for consumers. The funds will also enable Discos to explore new supply options, including purchasing power directly from generation companies and embedding renewable energy solutions.
Project Management and Consultant Recruitment
The Bureau of Public Enterprises (BPE) will oversee the DISREP programme, with a PIU Project Coordinator ensuring compliance with World Bank standards. The coordinator, based at BPE’s Abuja headquarters, will report to the Director-General through the Director of Energy.
Qualified consultants are required to have a Master’s degree in fields such as Electrical Engineering, Economics, or Finance, along with at least 10 years of professional experience, five of which must be in project management or the energy sector. Familiarity with Nigeria’s regulatory environment and challenges in power transmission and distribution is essential.
The coordinator will provide semi-annual reports on activities and liaise with the World Bank and other stakeholders, including participating Discos. The contract will run until May 2028, with renewal dependent on satisfactory performance.
Legislative Oversight
In a related development, the Nigerian House of Representatives has mandated Discos to undertake a N500 billion recapitalisation to ensure financial stability and efficient service delivery to the public.
The $500 million World Bank loan represents a significant step toward addressing Africa’s power distribution challenges, offering Discos the resources needed to modernize infrastructure, expand metering, and enhance service delivery for millions of businesses and households across the continent.
