The Federal Government and state governments have jointly raised N100 billion for the procurement of prepaid electricity meters under the Presidential Meter Initiative program. Minister of Power, Adebayo Adelabu, made this announcement while addressing broadcasters in Ibadan, Oyo State.
According to Adelabu, the administration of President Bola Tinubu has been working to address the metering gap in Nigeria through various initiatives. He noted that many customers are hesitant to pay their bills due to concerns about being overcharged by power distribution companies through estimated billing. Adelabu emphasized that metering would ensure transparency and accuracy in billing.
Out of Nigeria’s 12 million electricity customers, only around 5 million have been metered, leaving a significant gap of over 7 million. Adelabu attributed this to self-inflicted problems.
To address this issue, President Tinubu established the Presidential Meter Initiative and a Presidential Meeting Council, with Adelabu as chairman and the Special Adviser on Energy as secretary. The council’s mandate is to procure and install at least 2 million meters annually for the next five years.
Adelabu reported that the government has made significant progress in securing funding for the initiative, with N100 billion raised through a combination of federal and state government contributions. Additionally, the World Bank will support Nigeria’s meter procurement efforts with $200 million from the $500 million DISREP fund over the next two years.
The minister noted that contract awards have been issued, and meters will be sourced from both local and international suppliers through a competitive bidding process. The sale of meters has also been liberalized, allowing customers to purchase directly from vendors. However, Adelabu acknowledged that the cost of meters has increased due to exchange rate fluctuations, from N80,000 to around N120,000.
