FG Allocates N700bn for Free Meters Amid Power Woes

The Federal Government has allocated N700 billion from the federation account for the implementation of the Presidential Metering Initiative (PMI), according to Bolaji Tunji, Special Adviser to the Minister of Power on Strategic Communications and Media.

Tunji confirmed that the PMI remains on track, targeting the delivery of two million electricity meters annually. He disclosed that the allocated funds are ready, and procurement for the initiative has already commenced. Delivery of the first batch is expected in the first quarter of next year.

In addition, the government has committed to providing 1.3 million electricity meters under the World Bank Distribution Sector Reform Programme (DISREP), as part of its broader strategy to address the country’s significant metering gap. The DISREP initiative, involving 3.2 million meters in total, is set to launch this month.

Analysis of the Federal Account Allocation Committee’s records between April and August revealed that N420 billion has already been saved for the initiative through monthly deductions of N100 billion from federation revenue. These deductions aim to bridge Nigeria’s 50% metering gap. In April, an initial N120 billion was deducted, with subsequent allocations boosting the reserve.

Minister of Power, Adebayo Adelabu, had earlier stated that the government would provide N75 billion in seed funding, while the Nigerian Sovereign Investment Authority (NSIA) committed to contributing N250 billion annually. Additional debt financing from financial institutions is also planned to sustain the PMI.
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Victor Ojelabi, Managing Director of Abuja Electricity Distribution Company, highlighted the potential of the PMI to unlock N1 trillion in revenue currently tied up due to widespread unmetered electricity usage. The Nigerian Electricity Regulatory Commission (NERC) has also approved N21 billion for the 11 electricity distribution companies to supply meters to customers at no cost.

Despite progress, NERC acknowledges that the metering gap remains significant. Out of 13.33 million registered electricity customers, only 6.15 million (46.14%) are metered as of 2024. Since the power sector’s privatisation in 2013, 3.03 million meters have been installed, underscoring the ongoing challenges within the distribution sector.

The PMI and DISREP initiatives represent the government’s commitment to addressing inefficiencies and enhancing transparency in Nigeria’s electricity distribution sector.