The Minister of Power, Adebayo Adelabu, has announced that electricity consumers receiving free prepaid meters will have a repayment period of up to 10 years. This announcement comes in response to misconceptions surrounding potential refunds for customers who purchase meters through energy credits.
During a recent address in Ibadan, Adelabu addressed the rising costs of electricity meters and identified funding challenges as a key issue. He emphasized that the Federal Government will oversee the procurement of meters through various initiatives, allowing customers to repay the costs gradually over the designated timeframe.
Adelabu explained that the initiative is structured so that when the government supplies the meters, a small amount will be deducted from the customer’s energy credits over the repayment period. For instance, if a customer purchases energy credit worth N5,000, around N100 will be allocated toward the ‘free’ meter provided by the government.
Furthermore, Adelabu highlighted the collaborative efforts of the Federal Government and state authorities, which have collectively raised N100 billion aimed at enhancing the procurement process for prepaid electricity meters.
He detailed the establishment of the Presidential Meter Initiative (PMI), of which he has been appointed chairman, with a mission to secure and install a minimum of 2 million meters annually over the next five years. This strategic initiative is backed by a combination of funds from both federal and state governments.
Adelabu also revealed that the World Bank is set to support Nigeria in acquiring almost two million meters in the next two years. He confirmed that $200 million from the $500 million Distribution Sector Recovery Programme (DISREP) is earmarked for this vital meter procurement initiative, which is currently in an advanced stage of development.
