Nigeria’s federal government and the World Bank have launched a $500 million recovery programme to stabilise the country’s struggling electricity distribution companies, officials said on Wednesday in Abuja.
The initiative, known as the Distribution Sector Recovery Programme (DISREP), is designed to cut technical and commercial losses, close Nigeria’s vast metering gap and improve electricity supply across the country.
Speaking at a media briefing, Aisha Tukur, Director of the Energy Sector Department at the Bureau of Public Enterprises (BPE), said DisCos were weighed down by ageing infrastructure, rising debt and weak revenue collection despite years of privatisation.
She said distribution losses currently stand at 33%, far above the government’s 21% target, meaning ₦33 out of every ₦100 worth of electricity supplied is lost, with some utilities losing as much as ₦71 per ₦100 in late 2025.
Tukur said the sector operates below cost recovery, fuelling a cycle of debt, estimated billing, customer distrust and power theft that has pushed many users off the grid.
Under DISREP, the World Bank will support the rollout of 3.2 million smart meters over four years, with about 700,000 delivered and 200,000 installed so far, she said.
The $500 million package is structured into investment financing and results-based funding, offering concessional terms to improve long-term financial sustainability in the power sector.
BPE Director-General Ayodeji Gbeleyi said Nigeria still has 5.66 million unmetered customers, but all equipment for free meter installation has been secured to end estimated billing.
The head of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, admitted progress has been slower than planned, with just over 150,000 meters installed so far.
Oseni said the government remains committed to closing the metering gap, stressing that all DISREP meters will be distributed to consumers at no cost.