The Central Bank of Nigeria approved a loan facility of N273.34 billion for Nigeria’s eleven Electricity Distribution Companies (DisCos) to purchase 414,000 metres and expand their distribution capacity nationally.
This is featured in a CBN report that provides a detailed assessment of N10.3 trillion in developmental funds between 2015 and 2022.
The metres purchased include a wide range of sorts, including maximum demand metres, smart metres, and single-phase metres, among others.
The loan, provided through the Nigerian Electricity Market Stabilisation Facility intervention initiative, sought to raise electricity capacity from 3,400MW to around 4,900MW.
Breakdown Analysis of the Report
According to the report’s breakdown, Lagos and Abuja distribution companies received the most allocation from the apex bank.
The intervention initiative provided N40.74 billion to the Ikeja Disco, while the Eko Disco obtained a credit line for N34.85 billion.
On the other hand, the CBN provided Abuja Distribution Company with N34.69 billion through the Nigerian Electricity Market Stabilisation Facility.
Other receivers of the loan are Ibadan Discos (N27.73 billion), Enugu Disco (N27.84 billion), and Kaduna Disco (N24.36 billion), among others.
The research also noted important difficulties raised by the programme, such as an inefficient market plagued by liquidity issues, foreign exchange constraint, and inadequate electrical distribution infrastructure.
More insight.
Nigeria’s power sector continues to face numerous issues, including poor energy delivery due to ageing equipment, huge infrastructure deficits, and a troubling lack of investment in the sector.
Recently, the Nigerian energy Regulatory Commission (NERC) estimated that around 58% of registered energy consumers in the country do not have metres.
The Commission stated that metering “addresses one of the major concerns customers have with DisCos – the fear of unfair billing”.
Furthermore, NERC imposed a punishment of N10.5 billion on all eleven Electricity Distribution Companies (DisCos) for failing to comply with the stipulated cap on anticipated billing for unmetered customers across the country.
Furthermore, Adebayo Adelabu, the Minister of Power, has threatened to cancel the licences of power distribution firms (DisCos) in response to the ongoing power outage across the country.
According to Adelabu, the government is highly concerned about the Discos’ continued insufficient electricity distribution, despite the producing companies boosting power output to 4000MW.
“Moving forward, I intend to hold all distribution companies accountable for their performance.”
“Willful nonperformance will not be permitted, and serious penalties, including licence revocation, may be enforced.
“Additionally, I have instructed TCN to prioritise repair works on damaged transmission towers and power lines to improve supply in affected regions,” he said.