Economy

Minister announces delivery of 1.3 million meters by December

Written by Agboola Oluwafemi on October 16, 2024

News Views: 230

Nigeria’s Minister of Power, Adebayo Adelabu, has revealed plans to distribute no fewer than 1.3 million electricity meters between December 2024 and mid-2025, as part of the government’s initiative to tackle the nation’s substantial metering shortfall. Speaking at the Nigeria Energy Summit in Lagos, Adelabu highlighted that the initial consignment of meters would arrive by December 2024, followed by a second batch in the subsequent quarter of 2025. This effort is integral to the government’s strategy to close the metering gap and promote transparency within the electricity billing system.

Adelabu expressed concern over the current disparity, noting that of the 13 million registered electricity users, only around 5 million are metered, leaving an excess of 7 million reliant on estimated billing. “Where else in the world do over seven million consumers rely on estimated billing? It is fraudulent, lacks transparency, and is unacceptable in any well-governed nation,” he stated. Nonetheless, he conceded that the resolution of this issue would be a gradual process, one that could not be completed in a single year.

The minister underscored the critical need for both imported and locally produced meters to meet the demand, likening the metering gap to a “big elephant” that must be collectively addressed. To combat this, the government has initiated a presidential metering scheme, in collaboration with the Nigeria Governors Forum and with backing from the World Bank’s Distribution Sector Reform Programme. Of the 3.2 million meters targeted by the program, 1.3 million have already been secured, with contracts finalized and payments settled.

These additional meters are expected to greatly improve billing accuracy, reducing tensions between consumers and electricity distribution companies. Adelabu expressed optimism that ongoing reforms, such as the Band A tariff review, could see the power sector’s revenue double from N1 trillion in 2023 to N2 trillion in 2024. He further projected that if funds currently used for independent power generation were redirected into the national power grid, annual revenues could soar to N5 trillion, facilitating critical infrastructure upgrades.

The minister reiterated that the metering initiative would eradicate estimated billing while enhancing transparency in consumer charges. “Nigerians are willing to pay, provided their bills are fair and transparent. They recognize that alternative sources of energy are far more costly,” Adelabu emphasized.

Looking forward, Adelabu announced that an integrated national electricity policy, encompassing local content development, skill enhancement, and capacity building within the energy sector, is set to be presented to the Federal Executive Council in the coming weeks. He encouraged stakeholders to review the policy promptly, noting its significance in steering the future of the electricity sector. Once approved, the policy will be challenging to modify, making early feedback essential.

In his concluding remarks, the minister affirmed that with the 2023 Electricity Act in place and a well-defined regulatory framework guiding its implementation, Nigeria is on a clear path to overcoming the deep-rooted challenges of its electricity sector. He emphasized that the next phase would involve sustained investment in infrastructure, capacity building for local industry players, and bolstering regulatory enforcement to ensure lasting progress.