Federal Government, States Unite to Bridge Electricity Metering Gap

The Federal Government and state governments have pooled resources to raise N100 billion for the procurement of prepaid meters under the Presidential Meter Initiative (PMI). This landmark development was announced by the Minister of Power, Adebayo Adelabu, during a recent engagement with broadcasters in Ibadan, Oyo State.

The PMI, a flagship program of the federal government, aims to address the perennial issue of estimated billing, which has long plagued Nigeria’s electricity sector. With only 5 million out of 12 million customers currently metered, the initiative seeks to procure and install a minimum of 2 million meters annually over the next five years.

Furthermore, the World Bank has pledged support for the procurement of almost 2 million meters over the next two years, with a $200 million funding commitment under the Distribution Sector Recovery Program (DISREP).

The liberalization of meter sales, allowing customers to purchase directly from vendors, is another key aspect of the PMI. However, the minister acknowledged that exchange rate fluctuations have impacted the cost of meters, now priced at around N120,000, up from N80,000 previously.

Adelabu emphasized the critical role of funding in driving the success of the PMI, as Nigeria seeks to overcome the long-standing challenges in its electricity sector.