Emmanuel Addeh in Abuja
Nigeria has installed just 731,034 electricity meters under the World Bank-backed $500 million Distribution Sector Recovery Programme (DISREP), representing 22.8 per cent of its 3.2 million-meter target, as the initiative faces mounting pressure to meet its performance milestones before the end of 2027.
The latest implementation status and results report of the World Bank, seen by THISDAY, showed that meter installations increased from 379,380 in March 2026 to 731,034 by September, leaving approximately 2.47 million devices to be installed within about 15 months to meet the December 2027 target.
DISREP is a $500 million World Bank-funded initiative designed to turn around Nigeria’s power sector by improving the financial and operational performance of Electricity Distribution Companies (Discos).
It focuses on reducing massive technical and commercial losses, upgrading grid infrastructure, and restoring market stability through extensive smart metering, localised data management, and strict energy accounting.
The programme, backed by the International Bank for Reconstruction and Development (IBRD) loan, was approved by the World Bank on February 4, 2021, and became effective on February 2, 2023. Although initially scheduled to close on June 30, 2026, its closing date was subsequently revised to May 30, 2028, while December 2027 remains the target date for several critical performance indicators.
The report showed that only $94.44 million of the total financing had been disbursed, representing 18.89 per cent of the loan, while over $396.03 million remained undisbursed. THISDAY learnt that local meter manufacturers had gone to court to challenge parts of the initiative, a case that was recently resolved by the federal government.
But beyond metering, the programme has also recorded significant shortfalls in new electricity connections, distribution network rehabilitation, customer mapping and the deployment of management information systems.
Under the electricity access component, 804,137 people had gained direct access to electricity through new connections as of September 2026, against a target of 3.936 million by December 2027. This represented approximately 20.4 per cent of the target, leaving more than 3.1 million additional connections to be delivered within the remaining implementation period.
A THISDAY analysis of the World Bank data, indicated that of the beneficiaries recorded, 402,068 were women, compared with a target of 1.968 million, while 152,786 were young people, against a target of 747,840.
Besides, performance in the rehabilitation of distribution infrastructure has fallen considerably below expectations. The report put the length of medium- and low-voltage distribution lines rehabilitated or upgraded at 2,477 kilometres, against a target of 15,000 kilometres.
This represents approximately 16.5 per cent of the target, leaving more than 12,500 kilometres of distribution lines to be rehabilitated or upgraded.
The deployment of management information systems, another component designed to strengthen the operational and commercial performance of the distribution companies, has also been slow.
Only eight systems had been implemented against a target of 44 by December 2027, representing about 18.2 per cent completion. In the same vein, customer mapping for geographic information systems had reached 3,025,690 customers against a target of 12,994,042, or approximately 23.3 per cent.
The World Bank indicated that the customer mapping and management information systems figures had not changed since January 2026 because updated data from the Nigerian Electricity Regulatory Commission (NERC) was not yet available.
The programme also faces challenges in establishing some of the institutional and operational mechanisms required to sustain improvements in the electricity distribution sector.
For instance, the operation of meter data management systems across the distribution companies remained unachieved against a target of having the systems operational by December 2027.
Similarly, the annual publication of audited financial statements by distribution companies remained unachieved, while the development of NERC guidance for investments in climate-resilient infrastructure had yet to be completed, the data showed.
Billing efficiency was reported at 79.24 per cent in the latest results, compared with a baseline of 79.20 per cent recorded in December 2023 and a target of 85 per cent by December 2027.
The programme’s semi-annual collection of billed electricity stood at 75.56 per cent, below its target of 88 per cent. The indicator measures the proportion of billed electricity revenue collected and is central to improving the financial sustainability of distribution companies.
Weaknesses in metering, billing and revenue collection have long contributed to the financial difficulties confronting Nigeria’s electricity distribution industry. The DISREP intervention is intended to address these problems.
Despite the implementation gaps, the World Bank maintained its ratings for progress towards achieving the programme’s development objective and overall implementation progress at ‘Moderately Satisfactory’.
The lender said implementation had continued during the reporting period, with smart meter deployment accelerating significantly and procurement activities for additional meters and meter data management systems advancing.
It also reported improvements under the programme’s results-based financing component following the transfer of advance proceeds to participating distribution companies and the approval of feeder-level investment plans.
The report also disclosed that discussions were continuing on 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.
Priority areas include accelerating network rehabilitation, advancing customer enumeration and strengthening the verification of results linked to disbursements.
The report also indicated that the programme’s overall risk rating remained ‘substantial’, while institutional capacity for implementation and sustainability was rated ‘high’, reflecting concerns about the ability to execute and sustain the planned interventions.