Nigeria to Procure 3.5 Million Electricity Meters to Boost Power Sector Revenue

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In a bid to enhance revenue for its struggling power sector, Nigeria announced plans on Friday to acquire 3.5 million electricity meters by the year’s end. This move aims to address the prevalent issue of estimated billing, which affects over half of the country’s electricity consumers.

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Last month, the government inked a deal with the Nigerian Sovereign Investment Authority to fund the acquisition of 10 million electricity meters for households and businesses over five years, costing 1.325 trillion naira ($946 million).

Addressing an energy conference organized by BusinessDay, Adebayo Adelabu, Nigeria’s Minister of Power, disclosed that 2 million meters would be procured this year, supplemented by an additional 1.5 million meters supported by the World Bank. This collective effort is set to install 3.5 million meters by year-end.

Adelabu noted that the majority of the meters would be sourced from international suppliers, with a smaller portion expected from local manufacturers due to capacity constraints. Chinese companies have historically been major suppliers of meters to Nigeria.

The lack of adequate metering has contributed to revenue challenges in Nigeria’s power sector, where utilities struggle to recover a significant portion of issued invoices. Currently, around 7 million out of approximately 13 million customers remain unmetered, leading to disputes over estimated bills.

To address this issue, competitive bidding for the initial batch of 1.5 million meters has been completed, with deliveries anticipated in the coming months. Additionally, the government has allocated 20 billion naira to electricity distribution companies to procure meters for large consumers, ensuring metering for all such users by September.

Emman Tochi
Emman Tochihttps://naija247news.com
Emma Tochi is Naija247news Media Northern Bureau Chief, he's based in FCT Abuja. He overseas the northern operations of this business media

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