The Federal Government has earmarked a massive N700 billion from the federation account for the distribution of free electricity meters as part of the Presidential Metering Initiative (PMI), according to Bolaji Tunji, the Special Adviser on Strategic Communications and Media to the Minister of Power.
Speaking to The PUNCH on Friday, Tunji revealed that the initiative is on track to deliver two million meters annually, with the first batch set for rollout in the first quarter of next year.
“The Presidential Metering Initiative is still on course. Two million meters every year, and the first batch will be delivered by the first quarter of next year.
About N700bn provision has been made, and the money is ready,” he said.
The government has also committed to delivering 1.3 million meters out of 3.2 million planned under the World Bank-supported Distribution Sector Reform Programme (DISREP) by the end of this month.
The DISREP initiative aims to tackle Nigeria’s metering gap, which currently stands at 50%, by ensuring all households have access to prepaid meters.
An analysis of the Federation Account Allocation Committee (FAAC) minutes shows that the government deducted N420 billion between April and August to fund the metering program.
This monthly deduction of N100 billion is targeted at addressing inefficiencies in the power sector and closing the metering gap.
Minister of Power Adebayo Adelabu earlier disclosed plans for an initial N75 billion seed capital for the PMI, with an annual injection of N250 billion from the Nigerian Sovereign Investment Authority.
Additionally, the program will leverage debt financing from financial institutions to expand its resources.
According to Victor Ojelabi, Managing Director of Abuja Electricity Distribution Company, the initiative could unlock N1 trillion in revenue tied up in Nigeria’s electricity sector due to unmetered customers.
The Nigerian Electricity Regulatory Commission (NERC) has already approved N21 billion for the nation’s 11 distribution companies to provide meters free of charge to end-users.
However, the country’s metering gap remains substantial, with 6.15 million of 13.33 million registered customers metered, equating to a 46.14% metering rate in 2024.
A Step Towards Power Sector Reform
The PMI, alongside the DISREP, represents a comprehensive effort to modernize Nigeria’s electricity distribution sector, improve transparency, and reduce revenue losses.
With substantial funds allocated and the rollout underway, the initiative aims to bridge the country’s metering deficit and ensure more reliable power distribution.
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