In a bid to improve electricity distribution in the country, the World Bank has approved $500 million to support the distribution companies (DisCos) in rendering better services to consumers.
Ever since the privatisation exercise in 2013, there have been series of bottlenecks in the power sector. DisCos have always complained about the funding gap they experience which has resulted in poor distribution capacities.
Interestingly, the World Bank has come to their aid (learn more). A statement made by Shubham Chaudhuri, World Bank’s Country Director, explained that the project will help boost electricity access by improving the performance of DisCos through a large-scale metering program desired by Nigerians for a long time. He added that in the aftermath of the global COVID-19 pandemic, improving access and reliability of electric power is key to reduce poverty, improve businesses, and economic growth.
However, this financial support comes with a tag. It would be provided to DisCos only on the basis of achievement of results in terms of access connections, improved financial management, and network expansion. In simpler terms, only DisCos that transparently declare their performance reports to the public with the actual use of funds verified by an independent third party.
What it entails
The World Bank initiative will make certain that the DisCos make vital investments to reintegrate networks, install and make affordable electric meters for accurate customer billing, and improve the quality of service for those connected to the grid. In addition, this aid will also build up the financial and technical administration of DisCos to enhance the transparency and accountability of the utility.
The initiative will also reduce technical losses, increase energy efficiency, improve load collection from transmission networks, increase access to grid electricity, and in the same vein attract investments in on- and off-grid renewable energy.