FG seeks $500m World Bank loan to revamp power distribution

From Isaac Anumihe, Abuja

To salvage Nigeria’s troubled power sector, the Federal Government has disclosed that it is working with the World Bank to secure a $500 million facility aimed at resetting the distribution companies (DisCos) and improving electricity delivery nationwide.

Director-General of the Bureau of Public Enterprises (BPE), Mr. Ayodeji Ariyo Gbeleyi, who spoke to newsmen in Abuja, said the transaction has two components, Investment Project Financing (IPF) and a Programme-for-Results scheme.

“Under the IPF investment project financing, there will be a total of 3.2 million meters to be distributed to customers across the country. “About 330 of those meters have been shipped. One hundred and sixty thousand, three hundred meters have been delivered, and 160,700 are currently nearing completion”, he explained.

He added that additional shipments are expected before the end of the year.

“So, under Phase One of what we refer to as the international competitive bidding, we have received 330 additional consignments to come in between now and the middle of next year. There is the national competitive bid, which is also the local content component of this programme, to deliver 217,000 meters from local manufacturing. We expect that the project will also be ready. There is a second phase of the international competitive bidding that expects about 1.5 million meters to be procured from equipment manufacturers. Where we stand today, over the next few weeks, we will be launching that international competitive input process,” he said.

On the second component, the Programme-for-Results, Gbeleyi said the BPE would disburse $50 million by way of shareholder loans to the 11 DisCos. According to him, this will help the companies implement modern management information systems to improve efficiency and accountability in service delivery.

Meanwhile, Gbeleyi also provided updates on the pension sector, noting that pension assets had risen significantly.

“As at the end of June 2025, pension assets stood at N25 trillion. Contributors have enough assets to rely on,” he said.

The move to reset DisCos comes amid widespread complaints about inefficiency, poor metering, and unreliable supply, which continue to undermine Nigeria’s power sector despite years of reforms.