…Why metering initiatives have failed, experts

…Energy capping protects consumers, NERC

· Consumers are suffering, advocacy group

…There has been progress, Minister

 By Obas Esiedesa, Abuja

Despite nearly N1.5 trillion pumped into several electricity metering programmes by the Federal Government and multilateral partners, Nigeria’s huge metering gap persists due to flawed execution, weak regulation, profiteering by electricity distribution companies and cost burdens on consumers, investigation by Vanguard has shown.

Latest report from the Nigerian Electricity Regulatory Commission, NERC, shows that as of December 31, 2024, only about 46.57 percent (6.288 million) customers have meters, out of the 13.503 million registered electricity customers across the 12 electricity Distribution Companies (DisCos) in the country.

The data means that about 7.215 million or 53.57 percent of the customers have been left to face the outrageous estimated billing system preferred by the DisCos.

 National Mass Metering Programme

Vanguard’s findings show that the National Mass Metering Programme (NMMP), started in 2020, had proposed a seed fund of N200 billion from the Central Bank of Nigeria (CBN). The NMMP Phase 0 (pilot phase) was expected to provide one million meters at the cost of N59.28 billion.

The programme however ran into trouble in 2022, when the Meter Asset Provider beneficiaries, mainly meter manufacturing companies, failed to deliver the meters.

As a result, the CBN approached a High Court in Lokoja to freeze 157 bank accounts operated by 10 companies involved in the programme. The apex bank accused the meter manufacturers of diverting the money into other uses.

Speaking to Vanguard in confidence, an industry player said the NMMP failed largely at that point due to corruption and lack of transparency on the part of the companies involved and government officials supervising the programme.

The player who didn’t wish to be named insisted that the bulk of the meters were not supplied despite significant pressure from the CBN on the companies involved.

“Most were not supplied because of the connivance between the companies which diverted most of the money and supervising government officials in the last administration”, the sources added.

However, a recent document prepared by the CBN for a subcommittee of the House of Representatives investigating NMMP sighted by Vanguard showed that as of April, 2025, N55.42 billion has been disbursed to Meter Asset Provider beneficiaries, representing 93.49 percent of N59.28 billion for the procurement and installation of 976,968 meters. The document showed that so far, as of April 2025, 933,394 meters have been installed out of 976,968 meters delivered.

With the benefiting DisCos expected to repay the loan at 9% interest, the CBN report disclosed that a total of N14.87 billion and N12.50 billion have been received as total interest payments and total principal repayment respectively from inception to date.

A breakdown of the amount paid in favour of the DisCos showed that Ikeja got N6.3bn, Ibadan N6.16bn, Abuja N5.9bn, Eko N4.6bn, Enugu N5.2, Port Harcourt N4.2bn, Kano N5.2bn, Jos N5.2bn, Benin N3.4bn, Kaduna N4.4bn and Yola N4.4bn.

Meter Acquisition Fund (MAF)

There is also the Meter Acquisition Fund (MAF) introduced by NERC which disbursed about N21 billion to the DisCos for the provision of  free meters to customers following the introduction of Band-A customers.

A document prepared by NERC seen by Vanguard, on the utilisation of the fund showed that as of March, 2025, only 41,855 meters have been installed by the 12 DisCos from a target of 143,929 meters, just about 30 percent delivery.

Presidential Metering Initiative (PMI)

 In another intervention, the Federal and State governments set aside N700 billion for the Presidential Metering Initiative (PMI) for the procurement and free distribution of two million meters annually. The amount which was deducted directly from Federation Account would also have the Federal Government deposit N75 billion seed fund.

Latest documents seen by Vanguard show that about N100 billion had been disbursed.

The Minister of Power, Chief Adebayo Adelabu, two months ago, disclosed that under the PMI 70,000 meters would be available at the end of April 2025 with another 200,000 expected to be received at the end of May.

While the Ministry claimed that the meters have been supplied, two DisCos contacted by Vanguard, said none has been received at the time of filing this report.

 Meter Asset Provider (MAP) plan

The Meter Asset Provider (MAP) initiative was put in place by NERC in 2018 and it is funded by customers who pay for the meters. The customers are expected to be refunded by the DisCos through energy credit.

Documents by NERC showed that as of March, 2025, 2.33 million customers have paid for meters through the MAP Initiative. Sadly, only 1.23 million customers (53%) have been refunded by the DisCos.

World Bank Distribution Sector Recovery Programme

As part of support for the power sector, the World Bank granted Nigeria a loan of $500 million to expand the electricity distribution sector. Of this amount, $155 million was set aside for the procurement of 3.2 million meters. The operation of the fund which is domiciled with the Transmission Company of Nigeria TCN) has, however, been hampered by contract award dispute with local meter manufacturers accusing TCN of awarding the procurement contracts to only foreign firms. So far, two Chinese firms have been awarded contracts worth N100 million for the supply of 1.25 million meters.

 Local meter manufacturers kick

Following the decision of the Project Monitoring Unit of the TCN, which implements the World Bank funded Distribution Sector Recovery Programme, to award the procurement contracts to two Chinese companies, local meter manufacturers have called on the government to reverse the decision.

The manufacturers under the aegis of Association of Meter Manufacturers of Nigeria (AMMON), in a note by their President, Engr. Durosola Omogbenigun, pointed out that outsourcing the supply of meters to foreign firms was against the Nigeria First Policy of the present administration.

He stated: “AMMON remains ready and equipped to showcase its ability to mass meter the country with our members currently boasting a combined installed capacity of six million meters annually and holding over 250,000 compliant meters in the country, ready-for immediate deployment while continuing production to meet future demand.

“Our records show that AMMON/MAP have delivered quicker and in multiples of any foreign procurement project undertaken. The World Bank project delivered 75,000 meters out of 1.25million meters in 20 months while AMMON delivered 1.7million meters in 12 months of 2021. We are still able to do that if similar funded procurement is provided to AMMON.

“Recently TCN/PMU, the department in the Transmission Company of Nigeria, signed contracts with two Chinese companies to supply 1.25 million meters at the whopping cost of over $100 million using loans from the World Bank.

“Before the execution of this procurement process, we advised the FGN then in the last administration to allow local meter manufacturers to participate in this transaction and we had cogent reasons but we’re denied the opportunity”.

 Consumers are suffering – Group

Despite claims that energy capping protects consumers from over billing, the Electricity Consumers Protection Advocacy Centre said consumers without meters continue to pay for services not rendered by the DisCos.

The President of the group, Chief Princewill Okorie, who spoke to Vanguard on the issue said the electricity market was designed against consumers right from inception.

According to him, there is no unit that articulates and addresses issues concerning consumers at the Federal Ministry of Power despite several calls for such a unit to be created.

He stressed that DisCos are reluctant to provide meters for customers because it allows them to use the estimated billing system to bill consumers for electricity they have not supplied, adding that the DisCos are still making profits by providing estimated billings to consumers.

“Every month the DisCos bring the same bill and at times increase the amount ignoring the fact that supply has not improved. In this area (Mpape area of Abuja) there has been no supply now for more than four days but the bill at the end of the month will remain the same. So, whether there is supply or not, the consumers are made to pay the bills. If you do not pay, you are punished with disconnection”, he stated.

Okorie added: “Even when they say there is a grid collapse, the consumer without metering is made to pay as if he had light every day. It’s unfair to consumers. It’s unjust.

“The question now is, who are the people implementing the privatization policy of the power sector? You look at the Ministry of Power, that is the policy arm of the federal government. Who is handling consumer affairs in the ministry? Who is analyzing and evaluating electricity consumer policy? Who is advising the minister on consumer issues?

“But go to the ministry, you have a department for generation, you have for distribution, you have for transmission, but none for consumer protection. And this privatization was predicated on the fact that consumers would be willing to pay if they are properly served. So why is it that the consumer that is the beacon or the basis for privatization, doesn’t have any unit in the ministry to advise the minister?

He questioned the data that says about seven million customers are without meters in the industry, arguing that the figure is under stated.

He lamented that the huge amount of money spent by the government on various metering programmes ought to make meter installation free for consumers but “sadly, consumers continue to pay for the equipment used by the DisCos to collect money for themselves”.

He said the metering programmes have failed due to the insincerity of those managing the sector in connivance with the DisCos to rip off consumers.

 Why government interventions have failed – experts

Speaking to Vanguard on why there has been no major progress in metering, Executive Director, PowerUp Nigeria, Adetayo Adegbemle, said government interventions and public funding involved in the various mass metering schemes were at the heart of the problem.

Adegbemle noted that most of the free meters promised in the various programmes never got to the consumers, stressing that there were no verifiable targets or milestones set for the several programmes.

“One of the biggest challenges is government intervention and I have always posited that as long as we have the government intervening we will never see the end of the problem.

“I will give an example with the PMI. Have you seen the policy document on the PMI? If it is hidden how do they measure the progress and keep track of the number of meters they said it will deliver?

“For instance, they said the PMI will deliver 70,000 meters by April and 200,000 by May, as we speak nobody has sighted a single meter. This is June and no information. How are these enforceable? So, you know from the beginning that PMI has issues”.

On National Mass Metering Programme Phase 0, he said: “One of the feedbacks we got is that many of the meters that were claimed to have been installed were never installed.

“We have fake data from the DisCos claiming these numbers that never exist. Due to this, the CBN went ahead to freeze about 140 accounts (of companies involved in the supply of the meters). They went to court in Lokoja and only for them to wake up one morning unfreeze those accounts. As we speak now, nobody knows the outcome of that investigation”.

Also speaking on the issue, electricity market expert, Lanre Elatuyi, questioned the role of the government in meter provision.

Elatuyi stated that having privatised the sector it is wrong for the government to continuously pump money into the sector given its own inefficiencies and corruption in the system.

Progress has been made – Minister

The Minister of Power, Chief Adebayo Adelabu, has however defended the government’s effort aimed at bridging the metering gap, noting that progress has been made in the past year.

A mail to Vanguard by the Minister’s Special Adviser, Strategic Communications and Media Relations, Bolaji Tunji, stated that while the government acknowledges the existing metering gap, it is actively working to close it as quickly as possible.

“However, the fact remains that a sizable portion of active electricity users already have meters, countering the exaggerated portrayal of an industry in crisis.

“Taking a long term perspective, installation rates have varied over the years, the sector maintains a yearly average of about 668,000 meters installed.

‘‘Additionally, structured financing and government-backed initiatives are expected to accelerate deployment beyond the current pace, ensuring that the metering gap is addressed efficiently.”

He added, “to bridge this gap, the government has put in place key initiatives aimed at significantly improving metering across the country. ‘‘The Distribution Sector Recovery Program (DISREP) is set to deliver 3,205,101 meters by 2026. This will be achieved through different procurement models, including 1,437,501 meters through International Competitive Bid 1 (ICB1), 217,600 meters through National Competitive Bid (NCB), and 1,550,000 meters through International Competitive Bid 2 (ICB2). As part of this plan, the first batch of 75,000 meters under ICB1 was delivered by April 2025, followed by the second batch of 200,000 meters in May 2025.

“In addition to the DISREP, the ₦700 billion Presidential Metering Initiative (PMI) is another key intervention designed to accelerate metering. The initiative, which has already secured ₦700 billion from the Federation Account Allocation Committee (FAAC), is structured to ensure large-scale meter procurement and deployment. A Special Purpose Vehicle (SPV) has been established to oversee the implementation of the initiative”.

How NERC protects customers

Speaking on how the Commission protects consumers from the excesses of DisCos, Principal Manager, Adamu Ibrahim said the monthly energy capping order issued by NERC ensures that the DisCos do not over bill customers.

According to him, “the commission in an attempt to protect customers in the Nigerian Electricity Supply Industry introduced what is called the capping of estimated billing. The principle behind the capping of estimated billing methodology is that the consumption pattern of all unmetered customers in a particular feeder should mirror the pattern of all unmetered customers.

“The whole idea is that the average of the individual consumption pattern of customers on a particular feeder, for instance, if you have five customers on a feeder, one can consume 100, another 200, another customer 250, the fourth 300, and another consumes 150, the average will be around 200kWh. So all unmetered customers on that feeder should not be billed more than 200kWh.

“The cap is actually a ceiling which the DisCos are not allowed to bill customers above. So, on a monthly basis the Commission computes these averages and issues them to the DisCos. Those caps are also published on the Commission’s website”.

He encouraged customers to check their feeders on the Commission’s website to know the cap for their feeders which will help to monitor the bill received from their DisCos.

He assured that any customer that is over billed would get redressed while DisCos would also be punished.