Nigerian Venture Plans to Raise $1.2 Billion to Plug Power Gap
- 29th October 2020
- Posted by: Hakeem
- Category: Business plans, Energy
A Nigerian venture plans to raise 480 billion naira ($1.2 billion) over the next three years to buy electricity meters and help power distributors plug a revenue gap in Africa’s most populous nation.
Less than a 10th of Nigeria’s 41 million households have their electricity consumption metered, and half of those are faulty, according PricewaterhouseCoopers. As a result, distribution companies have to estimate bills, resulting in disputes that delay payments.
Meter Assets Finance and Management Co. hopes to end that by raising funds to purchase and supply meters to consumers, Onion Omonforma, the chief executive officer of New Hampshire Capital, said by phone from Lagos. New 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 money to go back and buy more meters and the cycle continues, paving the way to close the meter gap,” he said.