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NIGERIA SECURES $500 MILLION WORLD BANK BACKING TO REVOLUTIONISE POWER DISTRIBUTION
By PRESSCODE NEWS
ABUJA NIGERIA. 8TH FEBRUARY 2O26.
Nigeria has embarked on a transformative journey to address its chronic electricity distribution challenges through a $500 million intervention programme backed by the World Bank.
The Distribution Sector Recovery Programme (DISREP), launched in Abuja by the Federal Government, represents a comprehensive strategy to rehabilitate the nation’s struggling power sector and restore consumer confidence in electricity supply.
At the heart of the initiative lies an ambitious plan to deploy 3.2 million smart metres over the next four years, targeting a critical metering gap that has left approximately 5.66 million customers without proper billing infrastructure. The programme specifically aims to eliminate the controversial estimated billing system that has long frustrated Nigerian electricity consumers.
Aisha Tukur, Director of the Energy Sector Department at the Bureau of Public Enterprises, emphasised that the metering initiative would be entirely free for consumers, with no hidden installation charges. The Director-General of BPE, Ayodeji Gbeleyi, confirmed that all necessary equipment has been procured and stands ready for deployment.
Beyond metering, DISREP addresses the substantial revenue losses plaguing the sector. Current Aggregate Technical, Commercial and Collection losses stand at approximately 33 per cent, meaning nearly one-third of generated electricity value disappears through technical failures, power theft and collection inefficiencies.
The programme employs a dual financing structure combining Investment Project Financing with Programme-for-Results mechanisms, offering greater financial sustainability than conventional lending arrangements. This approach aims to strengthen the financial health of Distribution Companies whilst modernising aging infrastructure.
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Whilst only 150,000 metres have been installed to date, the Nigerian Electricity Regulatory Commission Chairman, Musiliu Oseni, remains confident in the administration’s commitment to closing the metering gap. The success of this $500 million intervention will ultimately depend on efficient execution and sustained political will to transform Nigeria’s power sector fundamentally.
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