The Federal government through the Bureau of Public Enterprise (BPE) has put pen to paper with three Chinese firms to deploy 1.43 million electricity meters across the country.
The Transmission Company of Nigeria (TCN) disclosed the agreement yesterday via its official X handle.
It stated that the signing ceremony was held at the BPE headquarters in Abuja, with TCN’s Chief Executive, Sule Abdulaziz who was represented by Ajiboye Oluwagbenga, the Executive Director of Transmission Service Provider (TSP) and others.
The three Chinese firms are; Ningbo Sanxing Medical & Electric Co. Ltd, Ningbo Sanxing Smart Electric Co. Ltd. And Messrs XJ Group Corporation.
Abdulaziz hailed the project as a crucial move towards reducing Nigeria’s 7.1 million metering gap, emphasizing its potential to significantly narrow the disparity between the supply and demand of meters across the country.
According to the TCN, this initiative is part of the Distribution Sector Recovery Programme (DISREP), financed by the World Bank’s $500 million facility through the Investment Project Finance (IPF) arrangement.
The statement reads, “The Federal Government, through the Bureau of Public Enterprises (BPE) and Distribution Companies, has signed a contract agreement with consortium, Ningbo Sanxing Medical & Electric Co. Ltd and Ningbo Sanxing Smart Electric Co. Ltd, and Messrs XJ Group Corporation for the supply and installation of 1,437,500 smart meters across the country.”
“The project is part of the Distribution Sector Recovery Programme (DISREP), funded by the World Bank’s $500 million facility through the Investment Project Finance (IPF) arrangement.”
About the World Bank DISREP project
In May 2024, the Federal Government of Nigeria announced that it had secured a $500 million loan from the World Bank. The facility, approved by the World Bank Board of Directors on February 4, 2021, is intended to support the Nigerian Distribution Sector Recovery Program (DISREP) in enhancing the financial and technical performance of the DisCos.
The DISREP aims to strengthen the DisCos’ financial and technical operations through capital investment and the funding of key elements within their Performance Improvement Plans (PIPs), which have been approved by the Nigerian Electricity Regulatory Commission (NERC).
Milestones achieved in the project
The purpose of the funding is to support the procurement of meters, a Data Aggregation Platform, and provide Technical Assistance. Significant progress has been made in preparing the DISREP Program, with several key milestones achieved, including approval by the Federal Executive Council (FEC) on August 3, 2022.
These milestones include the signing of the Financing Agreement by the Federal Ministry of Finance, Budget, and National Planning, and the World Bank, the adoption of the Program Operations Manual (POM) by the BPE and TCN, obtaining a Legal Opinion from the Attorney-General of the Federation, and the execution of the Subsidiary Loan Agreement.
The DISREP Program was officially declared effective on January 31, 2023, followed by the inauguration of the DISREP Technical Committee on May 6, 2024.
It was also included in the Federal Government Borrowing Plan, which received approval from the Senate Committee on May 16, 2024.
