Nigeria Secures ₦100 Billion to Install 2 Million Prepaid Electricity Meters Annually

In move to address the issue of electricity billing transparency in Nigeria, the Federal Government, in collaboration with state governments, has successfully raised ₦100 billion for the procurement of prepaid electricity meters.

This initiative is a part of the broader Presidential Meter Initiative (PMI), designed to close the widening meter gap that has long plagued the nation’s power sector.

The Minister of Power, Adebayo Adelabu, highlighted this development during a recent engagement with broadcasters in Ibadan, Oyo State. In his address, Adelabu emphasized the urgency of the issue, noting that the meter gap has become a major hindrance to achieving transparency and fairness in the electricity billing system.

“Out of over the 12 million electricity customers we have in Nigeria, only a little over five million are metered. We have over seven million meter gap today, and these are self-inflicted problems,” Adelabu explained, shedding light on the scale of the challenge.

The gap between metered and unmetered customers has contributed to widespread dissatisfaction among electricity consumers, many of whom feel they are being overcharged through estimated billing practices. The lack of accurate billing has, in turn, led to a high level of non-payment of electricity bills, further straining the financial stability of the power sector.

Adelabu revealed that the President Bola Tinubu’s PMI aims to procure and install a minimum of two million meters annually over the next five years. This ambitious plan, he stated, would be overseen by a Presidential Metering Council, which he chairs.

“Mr. President has set up what we call the Presidential Meter Initiative and set up a Presidential Meeting Council to address this issue. The mandate we have is to procure and install a minimum of two million meters on a yearly basis over the next five years,” he stated.

Adelabu said that the ₦100 billion raised for the PMI is a testament to the commitment of both the federal and state governments to resolving the meter gap issue. This fund, he noted, is a combination of contributions from various levels of government, reflecting a united front in tackling this longstanding problem.

In addition to the funds raised locally, Nigeria has also secured support from international partners. The World Bank, through its Distribution Sector Recovery Programme (DISREP), has committed to providing nearly two million meters over the next two years. Adelabu disclosed that $200 million out of the $500 million DISREP fund would be allocated specifically for meter procurement.

“We have made significant progress with the World Bank’s support. Contract awards have already been issued, and we expect the meters to start arriving by the end of the year,” he mentioned.

Adelabu also addressed concerns about the rising cost of meters due to fluctuations in exchange rates. He acknowledged that the price of meters has increased, making it more challenging for consumers to afford them.

“The meter that was going for ₦80,000 before is probably about ₦120,000 now. That’s the reality. What now matters most is the funding of this,” he said, highlighting the financial hurdles that need to be overcome.

To ensure that the meters are distributed efficiently and reach the consumers who need them the most, the government has adopted a strategy that includes both international and national competitive bidding. This approach is designed to balance the need for affordability with the capacity constraints of local manufacturers.

“It’s a combination of international competitive bidding and national competitive bidding. Before the end of the year, they will start bringing the meters in,” Adelabu explained.