The Nigerian government has revealed its goal to purchase 3.5 million Electricity meters before the year ends. This initiative aims to increase Revenue for the struggling power sector, where over half of customers are currently billed based on estimates. Adebayo Adelabu, the Minister of Power, announced that the majority of the supply will be obtained from foreign vendors, with only a small portion coming from local manufacturers due to their limited production capabilities. The products from Chinese companies have been commonly provided to Nigeria.
At a recent energy conference hosted by BusinessDay Newspapers, he announced plans to acquire a total of 2 million this year in addition to the 1.5 million already being procured with assistance from the World Bank. By the end of the year, a total of 3.5 million meters will be installed, according to the minister. The competitive bidding process for the initial batch of 1.5 million has been completed, and delivery is anticipated in the coming months.
₦20 billion will be used to purchase meters for high-volume consumers.
He stated that the government had approved the allocation of ₦20 billion to electricity distribution companies for the purchase of meters for high-volume consumers, whose rates were increased in April. This measure will guarantee that all of these customers will have it installed by September. The power minister estimated that there are 7 to 8 million customers without meters in the country. On the other hand, a PwC study indicates a significantly larger number of 38.91 million unmetered customers.
Furthermore, the analysis suggests that half of Nigeria’s installed meters are outdated or not working properly, which translates to 1.7 million customers with faulty meters, 4.09 million without meters at all, and 33.1 million potential customers who are not yet connected. As of September 30, 2023, the NERC reported that only 44.51% of customers across all DisCos had been metered. Ikeja DisCo stood out with a 72.0% metering rate, while Yola DisCo lagged behind at 18%.
A $500 million loan was taken from the World Bank to enhance the sector.
Out of 12.82 million customers, just about 5.70 million had, meaning that a significant 7.11 million consumers were still without it, resulting in a metering gap of 55.49%. According to a report by the Nigerian Electricity Regulatory Commission (NERC), over half of the complaints received last year were related to billing disputes, with customers who did not have but were being charged a set fee based on estimated usage despite the unreliable Power Supply from the outdated grid.
Also, the Bureau of Public Enterprise (BPE) revealed that in 2021, the federal government successfully obtained a $500 million Loan from the World Bank to enhance the power sector. A portion of the funds will be allocated towards supplying electricity consumers with meters. This loan was officially approved by the World Bank after meeting specific objectives and has now been added to the government’s recent borrowing plan. This initiative will ultimately lead to a fairer billing system, improved customer satisfaction, and a more Sustainable Energy sector for the future.
Related Article: Nigeria limits its electricity exports
In a similar report by AskNigeria, the Nigerian Electricity Regulatory Commission (NERC) instructed the Transmission Company of Nigeria (TCN) System Operator to decrease electricity exports in order to boost the domestic supply in Nigeria. The recent directive highlighted that Nigerians are facing challenges due to the grid operator’s focus on fulfilling bilateral agreements, like international exports, rather than meeting the needs of local customers. Starting on May 1, the regulator will restrict international off-takers to accessing only 6 percent of the total grid generation for a period of six months.