Financial Energy Review
…..by Ben Ndubuwa…..
A new report from the Nigerian Electricity Regulatory Commission (NERC) has disclosed that 53.85% of registered electricity customers across the country remain without meters. The third-quarter (Q3) 2024 report, released by NERC, reveals that a total of 7,182,909 out of 13,339,635 registered electricity customers are still unmetered. This accounts for over half of the total electricity users across Nigeria’s twelve Distribution Companies (DisCos).
The report, dated September 30, 2024, also highlights that only 6,156,726 customers (46.15%) have been metered, marking a significant gap in the ongoing efforts to eliminate estimated billing and improve service delivery.
NERC’s Efforts and Regional Performance
According to the NERC, the total number of new meters installed in Q3 2024 reached 184,507. Among the various DisCos, Ikeja, Ibadan, and Abuja reported the highest numbers of new meter installations, collectively accounting for nearly 62% of the total. Ikeja led the way with 25.45% of installations, followed by Ibadan with 21.48%, and Abuja with 14.61%.
The report also noted a significant improvement compared to the previous quarter. There was a remarkable increase of 256.01% in the number of customers metered, with the numbers soaring from 51,826 meters in Q2 2024 to 184,507 in Q3. While most DisCos showed improvements, Aba, Kaduna, and Jos were exceptions, with these regions seeing declines in meter installations of up to 43.90%, 24.69%, and 9.31%, respectively.
“Relative to Q2, we have seen substantial progress in the number of meters installed across most of the country. This progress shows our commitment to reducing the reliance on estimated billing,” said a NERC spokesperson.
Government’s Plans to Tackle Metering Issues
To address the persistent metering gap, Nigeria’s Minister of Power, Adebayo Adelabu, revealed in October 2024 that the federal government has procured 1.8 million meters, with deliveries expected in phases. The first batch is slated to arrive by December 2024, with the remaining meters to be delivered by the second quarter of 2025. Adelabu emphasized that this effort is part of a broader initiative to procure 3 million meters over the next five years.
“The fund is already being raised to ensure that we procure a minimum of 3 million meters over five years, with an annual average of 2 million meters,” Adelabu stated. “We have the support of the World Bank, which will help procure another 3.5 million meters within the next two to three years.”
Presidency’s Support for Mass Metering Program
In a statement in December 2024, the Presidency called for an accelerated push for the National Mass Metering Programme (NMMP), urging the Minister of Power to prioritize efforts to expand metering across the country.
This call follows recent directives from NERC requiring distribution companies to replace obsolete meters at no additional cost to consumers. The move is expected to further ease the financial burden on consumers who have long been affected by faulty or outdated meters.
As Nigeria continues its transition toward more accurate billing and improved electricity service, stakeholders are hopeful that the new metering plans will reduce the reliance on estimated billing and contribute to better overall service delivery.
