Nigeria is losing $25 billion (N7.5 trillion at the current exchange rate of N305 per dollar) yearly due to irregular electricity supply, The Guardian reports.
Besides, accumulated power sector cash deficits from January 2015 to December 2016 amounted to N931billion ($2.9 billion). This is the total amount underpaid by all the distribution companies (Discos) to the Nigerian Bulk Electricity Trading Plc (NBET) for invoices submitted to each Disco for electricity delivered to their distribution networks. It includes losses incurred by the companies due to lack of a cost-reflective end user tariff.
Operators in the power sector believe that the revenue shortfall will adversely impact the ability of the Discos to make capital investments in metering, network expansion, equipment rehabilitation and replacement that are critical to service delivery.
The Federal Government, which disclosed this through its Power Sector Recovery Programme document said that the World Bank Group had expressed willingness to assist the power sector with $2.6 billion to settle some of its financial challenges. It added that International Finance Corporation and Multilateral Investment Guarantee Agency (MIGA) are to mobilise up to $2.7 billion to facilitate investment in the private sector in the country.