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Tayo Busayo, Abuja
DAILY COURIER — In a bold move to address the persistent metering gap in Nigeria, the Federal Government has allocated N700 billion from the federation account for the distribution of free electricity meters under the Presidential Metering Initiative (PMI). This was disclosed by the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji, during an interview on Friday.
According to Tunji, the initiative, which aims to distribute two million meters annually, is on track to commence its first batch of deliveries in the first quarter of 2025.
“The Presidential Metering Initiative is still on course. Two million meters will be distributed every year, with the first batch starting early next year. About N700 billion has been reserved for this project, and the funds are ready,” he stated.
The government is also targeting the delivery of 1.3 million electricity meters under the World Bank-supported Distribution Sector Reform Programme (DISREP) by the end of December.
The Federal Account Allocation Committee (FAAC) meeting minutes analyzed by Daily Courier revealed that N420 billion had already been saved for the project through monthly deductions of N100 billion from April to August. The funds are aimed at reducing Nigeria’s metering deficit, which currently stands at 50%.
In May, the Minister of Power, Adebayo Adelabu, announced the government’s commitment to providing N75 billion as seed capital for the PMI. Additionally, the Nigerian Sovereign Investment Authority (NSIA) pledged an annual injection of N250 billion. The initiative is also leveraging debt financing from various financial institutions to further bolster resources.
Victor Ojelabi, Managing Director of the Abuja Electricity Distribution Company, highlighted the economic potential of the PMI, stating that it could unlock approximately N1 trillion in revenue currently tied up in the electricity supply industry due to unmetered customers.
The Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for the 11 electricity Distribution Companies (DisCos) to provide meters at no cost to end-users. This aligns with the government's vision of ensuring equitable and efficient distribution of meters across the country.
Persistent Challenges in Metering
Despite the progress, the metering gap remains significant. Since the privatisation of the power sector in 2013, only 3.03 million meters have been installed, bringing the total number of metered customers to 6.15 million out of 13.33 million registered customers. This places the metering rate at a modest 46.14% as of 2024, according to NERC.
The Distribution Sector Recovery Programme (DISREP), under which the PMI operates, is a comprehensive strategy designed to tackle inefficiencies in Nigeria's electricity distribution sector.
With the N700 billion allocation and collaborative efforts under the PMI, the Federal Government is making a significant push to bridge the metering gap and enhance efficiency in electricity distribution. The initiative promises to not only provide relief for millions of unmetered Nigerians but also unlock substantial revenue for the power sector, paving the way for a more sustainable energy future.
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