The Federal Government and state authorities have successfully raised N100 billion for the acquisition of prepaid electricity meters, marking a significant step forward in addressing Nigeria’s metering challenges.
The Minister of Power highlighted this achievement under the Presidential Meter Initiative (PMI) while speaking to broadcasters in Ibadan, the capital of Oyo State. This initiative is part of President Bola Tinubu’s broader strategy to eliminate the existing meter gap in Nigeria through various innovative measures.
Currently, over 12 million electricity customers exist in Nigeria, yet only around five million are properly metered, resulting in a substantial gap of more than seven million meters. The Minister emphasized that many consumers are hesitant to pay their electricity bills due to concerns over estimated billing, which they perceive as unfair practices by power distribution companies. Implementing proper metering is seen as a path to enhanced transparency.
During his address, the Minister stated, “President Tinubu has established the Presidential Meter Initiative and a dedicated council to tackle this issue, with myself serving as chair and the Special Adviser on Energy acting as the secretary. Our goal is to procure and install a minimum of two million meters annually over the next five years.”
He further detailed the progress made in sourcing funds for the initiative, emphasizing the collaborative effort between federal and state governments. “As of today, we have successfully secured N100 billion for meter procurement,” he noted.
Additionally, the World Bank is supporting Nigeria’s efforts by facilitating the acquisition of nearly two million meters over the next two years through a distribution sector recovery program. The Minister revealed that $200 million from a $500 million fund allocated by the World Bank has been earmarked for meter procurement, with advanced preparations already underway.
“We have begun issuing contracts with the World Bank to expedite the importation of meters, as local supply alone does not meet the demand,” he explained, noting the importance of using both international and national competitive bidding to ensure the timely arrival of meters.
The Minister also mentioned that the sale of meters has been liberalized, allowing customers to purchase directly from vendors. However, he acknowledged the rising costs associated with meters due to fluctuating exchange rates, indicating that the price for a meter has increased from around N80,000 to approximately N120,000. “Funding is now a critical issue for us moving forward,” he concluded.
