The Central Bank of Nigeria (CBN) has provided a substantial credit facility of N273.34 billion to eleven Electricity Distribution Companies (DisCos) in Nigeria.
This funding, outlined in a comprehensive report covering the period from 2015 to 2022, aims to facilitate the acquisition of 414,000 meters and bolster distribution capacity nationwide.
The initiative, under the Nigerian Electricity Market Stabilization Facility intervention project, seeks to elevate electricity capacity from 3,400MW to approximately 4,900MW.
The meters acquired encompass various types, including maximum demand meters, Smart meters, and Single-Phase meters.
Notable beneficiaries of the CBN intervention include Ikeja and Eko Discos, receiving N40.74 billion and N34.85 billion respectively. Abuja Distribution Company also obtained N34.69 billion.
Additional recipients comprise Ibadan, Enugu, and Kaduna Discos, securing loans ranging from N24.36 billion to N27.84 billion.
The report identifies prevailing challenges within the power sector, such as market liquidity issues, foreign exchange scarcity, and inadequate distribution infrastructure.
Concerns persist regarding the significant portion of consumers without meters, estimated at 58%, as highlighted by the Nigerian Electricity Regulatory Commission (NERC).
NERC has imposed a N10.5 billion fine on DisCos for non-compliance with metering regulations and billing practices.
Minister of Power, Adebayo Adelabu, has issued stern warnings to DisCos, threatening license revocation for persistent underperformance despite increased power generation.
With the influx of funding aimed at meter acquisition and distribution enhancement, coupled with regulatory scrutiny and ministerial directives, stakeholders anticipate tangible improvements in Nigeria’s electricity supply landscape.
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