Nigeria Unveils $2.5 Billion Plan to Stabilize Power Supply

The Nigerian government, led by Olu Verheijen, has announced a $2.5 billion plan to stabilize the country's power supply. The strategy involves mobilizing funds to address the deep-rooted challenges in Nigeria's electricity sector, including clearing longstanding payment arrears, upgrading transmission and distribution infrastructure, and boosting revenue collection.

The funds will also support the deployment of electricity meters to address the widespread meter shortfall and modernize the country's transmission grid. The government aims to improve electricity supply for nearly 12 million registered customers and unlock an additional 4,484 megawatts of generation capacity.

The plan includes shifting towards cost-reflective electricity pricing and introducing a consumption-based tariff system to ensure consumers pay strictly for power usage. Additionally, a previous $500 million intervention program, in partnership with the World Bank, targeted reducing losses and meter discrepancies in the electricity distribution sector.