The Federal Government, alongside the World Bank, is preparing to inject $500 million into Nigeria's struggling electricity distribution sector through the Distribution Sector Recovery Programme (DISREP). This initiative is directed at minimizing losses, bridging the metering deficit, and enhancing power supply across the nation.
This information was revealed by Aisha Tukur, the Director of the Energy Sector Department at the Bureau of Public Enterprises (BPE), during a press conference on Wednesday in Abuja.
Tukur indicated that the program's purpose is to stabilize the Electricity Distribution Companies (DisCos) that continue to grapple with outdated infrastructure, significant debt burdens, and weak revenue collection, despite the privatization of the sector.
She noted that the distribution sector currently experiences aggregate technical, commercial, and collection (ATC&C;) losses amounting to 33 percent, which is significantly higher than the national target of 21 percent. This translates to a loss of N33 for every N100 worth of electricity supplied.
In one DisCo, losses soared to N71 per N100 of electricity generated in the third quarter of 2025.
According to her, the sector operates below the cost recovery threshold, perpetuating a cycle of debts throughout the electricity value chain. Issues such as estimated billing, distrust from customers, and perceptions of fraud have compounded power theft and the movement away from grid dependence.
She further highlighted that Nigeria has a substantial metering shortfall, with plans to install 3.2 million smart meters over the next four years. Thus far, approximately 700,000 meters have been delivered, with about 200,000 already installed nationwide.
Tukur emphasized, "The Distribution Sector Recovery Programme (DISREP) is a World Bank-supported initiative meant to enhance the performance and financial sustainability of Nigeria's Electricity Distribution Companies (DisCos). It specifically aims to reduce the metering deficit, with the national estimate being around 5.3 million by NERC, mitigate commercial losses, boost revenue collection, and improve the service provided to electricity consumers.
"Overall, the program seeks to fulfill the Federal Government's objectives in power sector reform to enhance operational efficiency, ensure financial viability, and ensure greater transparency throughout the electricity value chain."
"DISREP is financed through a $500 million facility from the World Bank that is structured into two principal components: Investment Project Financing and Programme for Results. This concessional financing arrangement offers better terms than conventional loans and promotes long-term sector viability."
Director-General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, added that there are 5.66 million unmetered electricity customers in Nigeria, asserting that the government is committed to abolishing estimated billings.
He mentioned that all equipment needed for meter installation has been fully provided, stating that the new meters are configured specifically for their intended states and DisCos. He assured that customers would not be charged for installation, countering claims to the contrary.
Musiliu Oseni, Chairman of the Nigerian Electricity Regulatory Commission (NERC), acknowledged the slower-than-expected progress in metering expansion, despite the ambitious plans outlined in DISREP. He reported that while the initiative aims to roll out over three million meters, only slightly over 150,000 have been installed to date.
Nevertheless, he reassured Nigerians that the current administration is dedicated to addressing the metering gap and reiterated that the meters will be distributed at no cost to the customers.
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