Despite the N4 trillion debt burden weighing on Nigeria’s electricity sector, the Federal Government has secured a $500 million loan from the World Bank to support the upgrade of power distribution infrastructure across the country.
The fresh intervention is aimed at providing 3.2 million electricity meters to households, according to Ayodeji Gbeleyi, Director General of the Bureau of Public Enterprises (BPE). Gbeleyi made this known during a media briefing at the Senior Leadership Retreat of the Nigerian Independent System Operator (NISO) held in Abuja.
“This is another piece of reform that forms a key pillar of the President’s Renewed Hope Agenda — a clear case of promise made, promise fulfilled,” Gbeleyi stated.
He also highlighted the long-awaited formalisation of NISO, which had been in planning for over 13 years. The BPE finally registered NISO in May 2023, following President Bola Tinubu’s signing of the Electricity Act in June 2023, a move that decentralised power generation and improved private sector participation.
The new loan, though coming amid mounting debt, is seen as critical to stabilising electricity distribution and accelerating metering across Nigeria, which has long been a major issue in the sector’s efficiency and consumer billing transparency.
Stakeholders believe the investment will enhance consumer trust, reduce energy theft, and boost revenue collection, ultimately putting the sector on a more sustainable path.
