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Power Distribution Companies borrow N273.24 billion from CBN to purchase meters, others



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.

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.

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