IE, EKEDC, AEDC top recipient of N273.24 billion loan from CBN to DisCos to purchase meters, others

The eleven Electricity Distribution Companies (DisCos) in Nigeria obtained a combined N273.34 billion loan from the Central Bank of Nigeria to purchase 414,000 meters and enhance their distribution capacity nationwide.

This is contained in a recently released 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.

READ ALSO: Nigerian govt orders NERC to revoke lincences of non-performing DisCos

The Ikeja Disco received N40.74 billion from the intervention programme while the Eko Disco received N34.85 billion in credit.

On the other hand, the 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.

By Babajide Okeowo

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