The World Bank has approved a US$500m loan to support the Nigerian government in improving its electricity distribution sector. The project will seek to reduce technical losses, increase energy efficiency, replace diesel and biomass with grid-electricity, and invest more in on- and off-grid renewable energy. It is expected to improve the performance of the Electricity Distribution Companies (DISCOs) through a large-scale metering programme and to increase electricity access. In addition, financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion.
According to the World Bank, 43% of the Nigerian population (85 million people) don't have access to the electricity grid, resulting in economic losses estimated at 2% of the GDP.