The World Bank has raised concerns over delays affecting Nigeria’s Distribution Sector Recovery Programme (DISREP), warning that legal disputes, procurement challenges and slow contract execution are slowing efforts to improve electricity distribution nationwide.
In its Midterm Review Implementation Support Mission and Additional Financing Preparation report, the bank said progress had improved compared with previous assessments but several key issues remained unresolved.
The World Bank disclosed that it is considering an additional $308 million financing package to speed up reforms, including the installation of 1.7 million additional electricity meters, network rehabilitation and customer enumeration.
The bank said the installation of smart meters has gained momentum across nine electricity Distribution Companies (Discos), with 1.44 million meters progressing through the programme.
However, it noted that activities in Ikeja and Enugu Discos have slowed.
According to the report, plans to procure another 1.55 million internationally sourced smart meters were disrupted after a court injunction stopped the opening of bids following a complaint by the Association of Meter Manufacturers of Nigeria.
The World Bank also criticised delays affecting locally produced meters and Meter Data Management Systems, describing some contract delays as unjustified.
Despite the setbacks, the bank reported improvement in meter installation, rising from about 30,000 monthly installations in late 2025 to approximately 65,000 in the first quarter of 2026.
It added that hundreds of thousands of meters had already arrived in Nigeria, with more installations expected.
The bank said DISREP has contributed about 401,500 people to its Mission 300 initiative, which aims to expand electricity access across Africa.
On additional funding, the World Bank said discussions with the Federal Government had advanced on the proposed $308 million financing, which would support more metering, technical assistance, customer identification and electricity network improvements.
The bank recommended extending the project’s completion date by two years and one month to June 2030, saying the extension would allow enough time for procurement, installation and delivery of the expanded programme.
The report also highlighted delays in releasing funds under the Programme for Results (PforR) component, noting that although the Bureau of Public Enterprises (BPE) received a $37.5 million advance payment in December 2025, the money had not yet reached the electricity distribution companies.
The World Bank urged Nigerian authorities to urgently resolve procurement and contractual obstacles, while maintaining that DISREP’s overall implementation and development objectives remain “moderately satisfactory.”
The $500 million DISREP programme, approved by the World Bank Board in 2021, is designed to improve the financial and technical performance of Nigeria’s electricity distribution companies, tackle estimated billing and reduce revenue losses in the power sector.
