The eleven Electricity Distribution Companies (DisCos) in Nigeria obtained a credit facility totalling N273.34 billion from the Central Bank of Nigeria which was allocated to purchase 414,000 meters and enhance their distribution capacity nationwide.
This is contained in a report from CBN covering a detailed assessment of the N10.3 trillion developmental finance between 2015 to 2022.
The meters purchased encompass a variety of types, including maximum demand meters, Smart meters, and Single-Phase meters, among other variants.
The loan which was disbursed under the Nigerian Electricity Market Stabilization Facility intervention project aimed to increase electricity capacity from 3,400MW to approximately 4,900MW.
Breakdown Analysis of the Report
According to the breakdown provided in the report, Lagos and Abuja distribution companies emerged as the top recipients of the allocation from the apex bank.
The Ikeja Disco received N40.74 billion from the intervention programme while the Eko Disco received N34.85 billion in credit facility.
On the other hand, Abuja distribution company got N34.69 billion from the CBN under the Nigerian Electricity Market Stabilization Facility.
Other recipients of the loan are Ibadan Discos which borrowed N27.73 billion, Enugu Disco borrowed N27.84 billion, and Kaduna Disco borrowed N24.36 billion, among others.
The report also highlighted key issues identified in the program, including an inefficient market characterized by market liquidity challenges, foreign exchange scarcity, and inadequate electricity distribution infrastructure.
More Insight
The power sector in Nigeria persists in grappling with a myriad of challenges, including poor electricity supply resulting from ageing infrastructure, significant infrastructural deficits, and a concerning lack of investment within the sector
- Recently, the Nigerian Electricity Regulatory Commission (NERC) reportedthat about 58 per cent of registered electricity consumers in the country are without meters.
- The Commission observed that metering “addresses one of the major concerns customers have with DisCos – the fear of unfair billing”.
- Moreover, NERC issued a fine of N10.5 billion to be paid by all eleven Electricity Distribution Companies (DisCos) for their non-compliance with the mandated capping of estimated billing for unmetered customers across the country.
- In addition, the Minister of Power, Adebayo Adelabu, threatened to revoke the licenses of power distribution companies (DisCos) over the incessant power shortage nationwide.
- According to Adelabu, the ministry is deeply concerned about the ongoing inadequate electricity distribution by the Discos, despite the generation companies increasing power output to 4000MW.
- “Moving forward, I am committed to holding all distribution companies accountable for their performance.
- “Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.
- “Additionally, I have instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions,” the Minister noted.
(Nairametrics)
