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Power: FG secures $500m World Bank loan for distribution

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The Federal Government has obtained a $500 million loan from the World Bank to strengthen Nigeria’s power distribution network.

This was announced by the Bureau of Public Enterprises in a statement issued in Abuja by the Head of Public Communication, Amina Othman on Thursday.

In the statement, the BPE announced that the loan has been obtained to address the numerous difficulties facing DisCos in the nation.

“In a strategic move to address the identified gaps in the electricity distribution companies, the Federal Government of Nigeria has secured a $500m loan from the World Bank,” BPE stated.

“Approved on February 4, 2021, by the World Bank board of directors, this funding supports the Nigerian Distribution Sector Recovery Programme aimed at improving the financial and technical performance of the Discos.

“The DISREP is designed to enhance the financial and technical operations of the Discos through capital investment and the financing of key components of their Performance Improvement Plans, which have been approved by the Nigerian Electricity Regulatory Commission.”

The Bureau highlighted that important areas for improvement include buying metres in bulk and managing metre data better, setting up a Data Aggregation Platform, and enhancing governance and transparency in DisCos.

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