World Bank to Oversee Nigeria’s $500m Electricity Sector Loan in July

Paraphrased News Article (Active Voice)

The World Bank announced its plan to conduct a supervision mission next month to address the underperformance of a $500 million loan aimed at enhancing Nigeria’s electricity distribution sector.

According to the latest Implementation Status & Results Report for the project, the mission will occur from July 8 to July 12, 2024. Its objective is to address the ongoing issues and slow progress of the Nigeria Distribution Sector Recovery Program (DISREP).

The World Bank Board approved the DISREP on February 4, 2021, and the program took effect on February 2, 2023.

The primary aim of the program is to improve the financial and technical performance of Nigeria’s electricity distribution companies (DisCos).

The report specifies: “The Board approved the project on February 4, 2021, and it became effective on February 2, 2023. On May 15, 2024, DISREP was included in Nigeria’s external borrowing plan.

“The goal of the Project is to enhance the financial and technical performance of the electricity distribution companies. From July 8 to 12, 2024, a World Bank supervision mission will take place,” it added.

The report rated the project’s progress towards its goals as “Moderately Unsatisfactory,” both in overall implementation and specific project development outcomes.

Key performance indicators, such as reducing the metering gap for DisCos, improving semi-annual electricity billing, and enhancing the collection of billed electricity, have shown little or no advancement.

Although the loan was approved and activated, the disbursement rate remains at zero percent, with none of the $500 million yet disbursed. The project aims to reduce the metering gap, boost billing and collection efficiency, and strengthen corporate governance within DisCos.

However, the latest report reveals no significant progress in these areas. For example, the project’s goal to reduce the metering gap has seen no achievements so far.

Moreover, the report highlights the Nigerian government’s commitment to awarding contracts for the supply and installation of 1.25 million smart meters by the end of June 2024.

This initiative is expected to significantly enhance metering accuracy and billing efficiency, addressing one of the project’s critical objectives.