The World Bank has approved a $500 million loan to support electricity Distribution Companies (DisCos) in Nigeria under the leadership of President Bola Ahmed Tinubu. Aimed at addressing financial challenges within the distribution segment, this loan forms part of the Nigerian Distribution Sector Recovery Program (DISREP).
The program, overseen by the Bureau of Public Enterprises, aims to enhance the financial and technical performance of DisCos through capital investment and financing key components of their Performance Improvement Plans (PIPs). The concessional financing of the DISREP loan offers favorable terms compared to commercial bank loans.
DisCos will utilize the funds for critical distribution infrastructure investment, reducing ATC&C losses, improving power supply reliability, achieving financial sustainability, and enhancing transparency and accountability. Key areas for improvement include meter procurement, meter data management systems, and governance within DisCos.
The DISREP loan is expected to bring significant benefits to the Nigerian Electricity Supply Industry (NESI), bridging the metering gap, reducing losses, improving remittances, enhancing power supply reliability, and promoting transparency and accountability within DisCos.
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