FG and World Bank Launch $500M Program to Improve Nigeria's Electricity Distribution Sector

The Federal Government of Nigeria, in collaboration with the World Bank, has introduced a $500 million intervention program to address challenges in the electricity distribution sector. The Distributable Sector Recovery Program targets electricity distribution companies (DisCos) such as Ikeja Electricity (IE), Eko Electricity Distribution Company (EKDC), and others across the country.

Aisha Tukur from the Bureau of Public Enterprises (BPE) highlighted the necessity of the intervention due to infrastructure challenges, mounting debts, and weak revenue collection in the privatized power sector. The program aims to close the meter gap, reduce commercial losses, enhance revenue collection, and improve service delivery to electricity consumers.

Ayodeji Gbeleyi of BPE emphasized the government's commitment to providing meters to consumers at no cost to bridge the current 5.66 million unmet electricity customers. Musiliu Oseni from the Nigerian Electricity Regulatory Commission (NERC) acknowledged the slow progress in meter deployment but assured Nigerians of the government's dedication to closing the meter gap.

The initiative is seen as a critical step towards restoring trust and financial stability in the power sector.