The Federal Government, together with state governments, has successfully raised N100 billion to fund the procurement of prepaid electricity meters.
Minister of Power Adebayo Adelabu announced this development under the Presidential Meter Initiative (PMI) program during a briefing in Ibadan, Oyo State, which was reported by our correspondent.
Adelabu highlighted that President Bola Tinubu’s administration is actively working to address the meter deficit in Nigeria through various initiatives. He pointed out that many consumers are reluctant to pay their bills due to dissatisfaction with estimated billing practices by power distribution companies, emphasizing that proper metering will foster greater transparency.
“Of the over 12 million electricity customers in Nigeria, just over five million are currently metered. We are facing a deficit of over seven million meters, a problem largely of our own making,” Adelabu said.
He elaborated on the government’s strategy to bridge this meter gap, noting, “President Tinubu has established the Presidential Meter Initiative and appointed a Presidential Meeting Council to tackle this issue. I am leading this council, with the Senior Advisor on Energy to the President serving as the secretary. Our goal is to procure and install at least two million meters annually over the next five years.”
Adelabu reported that significant progress has been made in securing funding, with N100 billion now available for meter procurement through a combination of federal and state resources.
Additionally, the World Bank has committed to supporting Nigeria’s meter procurement efforts, pledging to fund nearly two million meters over the next two years through the Distribution Sector Recovery Programme (DISREP). Adelabu revealed that $200 million of the $500 million DISREP fund is earmarked for this purpose and is currently at an advanced stage.
“The World Bank has already issued contracts for meter procurement, with meters set to be imported and assembled locally. We are balancing international and national competitive bidding processes. Meter importation will begin before the end of the year,” he added.
Furthermore, Adelabu noted that the sale of meters has been liberalized, allowing Distribution Companies (DisCos) to enable customers to purchase meters directly from vendors. He acknowledged that meter prices have increased due to exchange rate fluctuations, with the cost rising from approximately N80,000 to N120,000. He emphasized that securing adequate funding remains crucial.