The federal government is set to take a major step towards improving the country’s electricity billing system with plans to purchase 10 million prepaid meters for distribution nationwide in 2025.
This initiative, announced by the Minister of Power, Adebayo Adelabu, aims to address long-standing issues with estimated billing, which has left many Nigerian consumers frustrated and overcharged.
During the commissioning of mobile power substations in Oyo and Ogun States, Adelabu shared details of the ambitious project, highlighting that the first batch of 2 million prepaid meters will be distributed to consumers before the end of the first quarter of 2025 as part of the National Mass Metering Programme (NMMP).
Backstory
Earlier this month, the Presidency tasked the Minister of Power to prioritize the acceleration of the National Mass Metering Programme (NMMP) as part of ongoing efforts to reform Nigeria’s power sector.
This call was made during a meeting between Hadiza Bala Usman, Special Adviser to the President on Policy and Coordination and Head of the Central Results Delivery Coordination Unit (CRDCU), and Bayo Adelabu, Minister of Power, Permanent Secretary, and Heads of Departments and Agencies within the Ministry of Power.
According to Bala Usman, “This is part of the President Tinubu administration’s ongoing efforts to ensure continuous monitoring and improvement in the delivery of key ministerial mandates.”
According to the statement, the engagement, conducted as part of the Tinubu administration’s agenda for impactful governance, focused on the Q1–Q3 Performance Assessment Report regarding Presidential Priorities and Ministerial Deliverables.
Tackling the Problem of Estimated Billing
One of the key issues that has plagued Nigeria’s electricity sector is the reliance on estimated billing, which often results in inflated charges for consumers.
- Many Nigerians have long criticized the system, which fails to accurately measure electricity consumption, leading to unfair billing practices.
- As part of measures to address the challenge of estimated billings, the National Assembly passed the Electricity Act (Amendment) Bill 2024 into law on February 9.
This amendment supplements the electricity bill, which authorizes states, businesses, and individuals to generate, transmit, and distribute electricity.
Government’s Commitment to Power Sector Reform
The purchase and distribution of 10 million prepaid meters is just one component of a series of reforms aimed at transforming Nigeria’s power sector.
- The government has been working on improving infrastructure, addressing power generation shortages, and enhancing distribution efficiency.
- By ensuring that more consumers are equipped with prepaid meters, the government hopes to bring more transparency to electricity billing, empowering Nigerians with greater control over their energy consumption and spending.
The introduction of prepaid meters, analysts note, will also help in reducing instances of power theft, which has been another issue affecting the country’s power supply and distribution system.
What you should know
- Launched in 2020, the NMMP is a metering programme setup by the Federal Government of Nigeria to provide prepaid meters for customers to ease the burden of meter acquisition with the aim and resolve the longstanding challenges of estimated billing, which have eroded consumer confidence and hindered revenue generation.
- Federal Government originally approved N21 billion for the programme under the Presidential Metering Initiative to close the country’s metering gap by providing meters to unmetered power users at no cost.