Only 22.8% Metering Achieved as Deadline Looms for $500m W’Bank Scheme

As the deadline for a $500 million World Bank scheme approaches, Nigeria's electricity sector faces a significant hurdle in meeting its metering targets. The Distribution Sector Recovery Programme (DISREP), backed by the World Bank, has only achieved 22.8 percent of its 3.2 million-meter goal, with just 731,034 meters installed so far.

The initiative, designed to improve financial and operational performance in Nigeria's power sector, aims to reduce technical and commercial losses, upgrade grid infrastructure, and restore market stability through smart metering, localized data management, and strict energy accounting.

The programme, which became effective in February 2023, was initially set to close in June 2026 but was extended to May 30, 2028. However, meeting critical performance indicators is now more urgent, with the latest results report indicating that only 18.89 percent of the loan has been disbursed, amounting to $94.44 million. Over $396.03 million remains undisbursed.

While 804,137 people gained access to electricity through new connections as of September 2026, this represents only 20.4 percent of the target of 3.936 million connections by December 2027. This shortfall of more than 3.1 million connections leaves significant work ahead. Additionally, the rehabilitation of distribution infrastructure falls far short of expectations, with only 2,477 kilometers of medium- and low-voltage lines rehabilitated or upgraded, which is approximately 16.5 percent of the target of 15,000 kilometers.

The deployment of management information systems, essential for operational and commercial performance, has also been slow, with only eight systems implemented against a target of 44 by December 2027—representing just 18.2 percent completion. Customer mapping, designed to strengthen the geographical information system for electricity distribution, has reached 3,025,690 customers, which is about 23.3 percent of the target of 12,994,042 customers.

Despite these challenges, the World Bank maintains a 'Moderately Satisfactory' rating for progress towards the programme's development objective and overall implementation progress. However, weaknesses in metering, billing, and revenue collection have long plagued Nigeria's electricity distribution industry, contributing to its financial difficulties.

The DISREP intervention aims to address these issues, with the World Bank noting significant improvements in smart meter deployment and procurement activities. Nonetheless, discussions are ongoing regarding a possible restructuring of the programme to align it with Nigeria's current electricity sector policy framework and improve the prospects of achieving its development objectives.