Nigerian Venture Plans to Raise $1.2 Billion to Plug Power Gap

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A Nigerian venture to raise 480 billion naira ($1.2 billion) the next three years to buy electricity meters and help power distributors plug a revenue gap in Africa’ most populous nation.


Less than a 10th Nigeria’ 41 households have their electricity consumption metered, and half those are faulty, according PricewaterhouseCoopers.

As a result, distribution companies have to estimate bills, resulting in disputes delay payments.

Meter Assets Finance and Management Co. hopes to end by raising funds to purchase and meters to consumers, Onion Omonforma, the officer Hampshire Capital, said by phone from Lagos. Hampshire Capital, FBNQuest and Kairos Investments Africa are helping to package and structure the venture, known as MAPCo, for investors to either buy equity or inject debt into the company.

“The electricity distribution firms will then have the to go back and buy meters and the cycle continues, paving the way to close the meter gap,” he said. MAPCo will collect the cost of the meters from consumers at a premium the next 10 years. The meters will be handed to the power-distribution companies once paid off.

MAPCo to issue a 100 billion naira bond in the next year, Omonforma said. Roadshows have been planned for the U.. and Europe, and will also include local institutional investors.

“We envisage a lot of people who are looking for a long-term instrument will key into it,” he said.