FG, W/Bank launch $500m intervention programme for DisCos

The Federal Government, in collaboration with the World Bank, is set to inject $500 million into Nigeria’s ailing electricity distribution sector under the Distribution Sector Recovery Programme (DISREP), as part of efforts to cut losses, close the metering gap and improve power supply nationwide.

This was disclosed by Director of the Energy Sector Department at the Bureau of Public Enterprises (BPE), Aisha Tukur, during a media briefing on Wednesday in Abuja.

Tukur said the programme was designed to stabilise electricity Distribution Companies (DisCos), which continue to struggle with ageing infrastructure, huge debts and weak revenue collection despite the privatisation of the power sector.

She stated that the distribution segment currently records Aggregate Technical, Commercial and Collection (ATC&C) losses of 33 per cent, far above the national target of 21 per cent, meaning that N33 of every N100 worth of electricity supplied is lost.

In one of the DisCos, losses climbed as high as N71 per N100 of electricity generated in the third quarter of 2025.

According to her, the sector operates below cost recovery, creating a cycle of debt across the electricity value chain, while estimated billing, customer mistrust and fraud perceptions have driven power theft and off-grid migration.

She added that Nigeria still has a huge metering deficit, with the programme targeting the deployment of 3.2 million smart meters over four years.

So far, she said, nearly 700,000 meters have been delivered, while about 200,000 have been installed nationwide.

According to her, “The Distribution Sector Recovery Programme (DISREP) is a World Bank–supported intervention designed to improve performance and financial sustainability of Nigeria’s Electricity Distribution Companies (DisCos). Specifically, it focuses on closing the metering gap (currently estimated at about 5.3 million by NERC), reducing commercial losses, enhancing revenue collection, and improving service delivery to electricity consumers.

“Broadly, it is to ensure that the objectives of the Federal Government’s power sector reform for improved operational efficiency, financial viability, and enhanced transparency across the electricity value chain are achieved.

“DISREP is financed through a $500 million World Bank facility structured into two main components: Investment Project Financing and Programme for Results. The concessional financing structure provides more favourable terms than commercial borrowing and supports long-term sector sustainability.”

In his remarks, Director-General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi said the country currently has 5.66 million unmetered electricity customers, stressing that the government was determined to end the era of estimated billing.

Gbeleyi said all accessories required for meter installation had been fully provided, noting that the new meters had been programmed specifically for the states and DisCos they are meant for. He added that all components needed for free meter delivery were already in place, dismissing claims that customers would be asked to pay for installation.

On his part, Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, acknowledged that progress on metering had been slower than expected, despite the scale of the programme.

Oseni said while DISREP was designed to deploy over three million meters, installation had recorded a slow take-off, with only slightly over 150,000 meters installed so far.

He, however, assured Nigerians that the current administration was committed to closing the metering gap, insisting that meters would be distributed free of charge to customers.

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