Nigeria Seeks $500m World Bank Loan to Boost Power Distribution and Metering Nationwide
Nigeria’s Federal Government is turning to the World Bank for a $500 million lifeline to tackle the persistent challenges in its electricity distribution sector. The loan, officials say, will help reset struggling Distribution Companies (DisCos) and improve electricity supply across the country, a move that could bring relief to millions of households and businesses facing unreliable power.
Director-General of the Bureau of Public Enterprises (BPE), Mr. Ayodeji Ariyo Gbeleyi, explained in Abuja that the agreement with the World Bank comes with two major components: the Investment Project Financing (IPF) and the Programme-for-Results scheme. Under the IPF, more than 3.2 million prepaid meters are to be distributed nationwide, with 330 already shipped, 160,300 delivered, and another 160,700 nearing completion. Additional consignments are expected before the year ends.
Gbeleyi added that the metering plan would roll out in phases. The first phase includes 330 consignments arriving before mid-2026, while a local content programme will produce 217,000 meters through Nigerian manufacturers. Another 1.5 million meters are planned for procurement from global equipment makers under the second phase. “In the next few weeks, we will be launching the international competitive bidding process,” he said, highlighting the urgency of the reforms.
On the Programme-for-Results component, Gbeleyi revealed that $50 million would be disbursed as shareholder loans to the 11 DisCos. These funds are expected to support the deployment of modern management systems that will strengthen efficiency, accountability, and customer service within the electricity distribution network.
The government’s renewed push for reforms comes amid widespread frustration over poor power supply, estimated billing, and frequent blackouts that have stifled growth in Africa’s largest economy. Nigerians are hopeful that the World Bank-backed investment will finally deliver tangible improvements in metering, transparency, and electricity delivery, easing the burden on both households and industries.
Source: The sun