The Federal Government, in partnership with the World Bank, is preparing to inject $500 million into Nigeria’s struggling electricity distribution segment under the Distribution Sector Recovery Programme (DISREP), aimed at reducing losses, closing the metering gap and improving electricity supply across the country.

The disclosure was made by Aisha Tukur, Director of the Energy Sector Department at the Bureau of Public Enterprises (BPE), during a media briefing held on Wednesday in Abuja.

Tukur explained that DISREP was created to stabilise electricity Distribution Companies (DisCos), which continue to face challenges such as deteriorating infrastructure, heavy indebtedness and weak revenue collection despite the privatisation of the power sector.

She revealed that the distribution segment currently records Aggregate Technical, Commercial and Collection (ATC&C) losses of 33 per cent, significantly higher than the national benchmark of 21 per cent. This means that about ₦33 of every ₦100 worth of electricity supplied is lost, with one DisCo recording losses as high as ₦71 per ₦100 of power supplied in the third quarter of 2025.

According to Tukur, the sector operates below cost-recovery levels, leading to mounting debts across the electricity value chain. She added that estimated billing, declining consumer trust and perceptions of fraud have fuelled electricity theft and a growing shift to off-grid power solutions.

She further noted that Nigeria still faces a significant metering shortfall, with DISREP targeting the rollout of 3.2 million smart meters over four years. So far, nearly 700,000 meters have been delivered, while about 200,000 have been installed nationwide.

“The Distribution Sector Recovery Programme is a World Bank–backed initiative designed to strengthen the performance and financial viability of DisCos,” she said. “It focuses on reducing commercial losses, improving revenue collection, closing the metering gap—currently estimated at about 5.3 million meters by NERC—and enhancing service delivery to consumers.”

She added that the programme supports the Federal Government’s power sector reform objectives of improved efficiency, financial sustainability and transparency across the electricity value chain.

Tukur explained that DISREP is funded through a $500 million concessional facility from the World Bank, structured around Investment Project Financing and Programme-for-Results, offering more favourable terms than commercial loans and supporting long-term sector stability.

Speaking at the briefing, the Director-General of BPE, Ayodeji Gbeleyi, said Nigeria currently has about 5.66 million unmetered electricity customers, stressing that the government is committed to ending estimated billing.

Gbeleyi assured consumers that all materials required for meter installation had been fully provided and that the meters had been programmed specifically for the states and DisCos where they would be deployed. He dismissed claims that customers would be charged for installation, insisting that meters would be delivered and installed at no cost.

Meanwhile, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, acknowledged that progress on metering had been slower than anticipated. He said that although DISREP was designed to deliver over three million meters, installations had recorded a slow start, with just over 150,000 meters installed so far.

Oseni, however, reaffirmed the administration’s commitment to eliminating the metering deficit and reiterated that meters would be provided to customers free of charge.

Providing further insight, the Managing Director of the Transmission Company of Nigeria (TCN), Engr. Sule Abdulaziz, said Nigeria’s metering requirement was initially estimated at 10 million meters, but the figure has since been revised downward.

“As of March 22, 2026, the metering gap has reduced to about five million meters,” he said, attributing the improvement to ongoing interventions and installations.

On his part, the Managing Director of the Abuja Electricity Distribution Company (AEDC), Chijioke Okwuokenye, said measures had been put in place to promote transparency and eliminate extortion. He disclosed that AEDC had intensified customer sensitisation to criminalise illegal charges and ranks among the leading DisCos in meter deployment.

Similarly, the Chief Executive Officer of Eko Electricity Distribution Company, Wola Joseph-Condotti, stated that the company does not charge customers for meter installation and has established internal controls to prevent abuse. He added that dedicated whistle-blowing email channels are available for customers to report extortion or misconduct.