The Senate has granted approval for President Bola Tinubu’s loan request of $500,000,000 to the Bureau of Public Enterprises (BPE) for the purpose of metering citizens to enhance the financial and technical performance of Electricity Distribution Companies (DISCOs).
The loan, part of the Nigeria Distribution Sector Recovery Program (DISREP), was approved during the Senate’s consideration of the report submitted by the Senator Aliyu Wammako-led Senate Committee on Local and Foreign Debts.
Presenting the report to the Senate, Vice Chairman of the Committee, Senator Haruna Manu, stated that the approval was in line with the ongoing negotiation of external borrowing for the BPE.
The loan forms part of the larger $7.94 billion external borrowing plan sought by President Tinubu, initially submitted on November 1st, 2023.
However, the Senate previously approved borrowing of $7.4 billion during a special plenary session on December 30, 2023, after considering the report of the Committee on local and foreign debt.
Senator Manu emphasized that the terms and conditions of the loan will not compromise Nigeria’s economic growth or sovereignty.
He outlined the legislative process and legal framework guiding external borrowing, highlighting the need for transparency, compliance with fiscal responsibility laws, and accountability in debt management.
The loan program aims to address the financial and technical challenges faced by electricity distribution companies in Nigeria, with a focus on improving metering infrastructure.
The initiative is expected to enhance revenue collection efficiency and promote better service delivery in the electricity sector.
