The evolution of the electricity sector in Nigeria gives rise to contrasting images, between progress and challenges. The recent launch of the NEMSF was aimed at clearing financial obligations to sector players and reabsorbing debts inherited from the Power Holding Company of Nigeria (PHCN) to gas suppliers.
According to a report by the Central Bank of Nigeria, part of the N273.3 billion loan to DisCos enabled the installation of 414,000 prepaid meters ranging from peak demand meters to smart meters single-phase.
These investments also helped boost electricity capacity, increasing production from 3,400 megawatts to around 4,900 MW.
This partnership between the CBN and the banking sector was put in place to address recent revenue shortfalls in the power sector caused by factors such as gas shortages, acts of pipeline sabotage, lack of financing , unprofitable prices and corruption.
The various DisCos benefited from this loan program. For example, Ikeja Disco received N40.74 billion, Eko Disco 34.85 billion, Abuja Distribution Company 34.69 billion, Ibadan Disco 27.73 billion, Enugu Disco 27.84 billion and Kaduna Disco 24.36 billion.
Despite these advances, challenges persist in the electricity sector, such as market liquidity problems, scarcity of foreign currencies and insufficient electricity distribution infrastructure.
These intervention measures in the electricity sector raise questions, in particular on the repayment of loans taken out by DisCos, a point raised by legislators.
Through these images of the development of the electricity sector in Nigeria and the challenges linked to the repayment of loans by DisCos, the road towards a more stable and efficient electricity supply seems strewn with obstacles to overcome.