The Federal Government has allocated N700 billion from the federation account to implement the Presidential Metering Initiative which aims to provide free electricity meters to Nigerians.
According to the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji, the initiative remains on track with plans to deliver two million meters annually.
Tunji, speaking with The PUNCH on Friday, confirmed that procurement for the project is underway, and the allocated funds have reached N700 billion.
“The Presidential Metering Initiative is still on course. Two million meters every year, delivery of the first batch will start by the first quarter of next year. About N700bn provision has been made, and the money is ready,” he stated.
He also revealed the government’s commitment to delivering 1.3 million electricity meters this month as part of the World Bank-supported Distribution Sector Reform Programme which has a target of 3.2 million meters.
“The DISREP programme will commence this month,” he added.
A review of the Federal Account Allocation Committee’s minutes from April to August revealed that N420 billion had been saved through monthly deductions of N100 billion from federation revenue.
This deduction aims to reduce Nigeria’s 50% metering gap. In April, N120 billion was deducted as the first tranche for the PMI, while subsequent months contributed to the cumulative N420 billion.
Minister of Power Adebayo Adelabu previously disclosed that the initiative would receive an initial seed capital of N75 billion from the government, with the Nigerian Sovereign Investment Authority injecting N250 billion annually.
The project will also leverage debt financing from various financial institutions to enhance its resources.
Managing Director of the Abuja Electricity Distribution Company, Victor Ojelabi, highlighted the PMI’s potential to unlock N1 trillion in revenue tied up in the electricity supply industry due to unmetered customers.
As part of the initiative, the Nigerian Electricity Regulatory Commission recently approved N21 billion for the country’s 11 electricity Distribution Companies to supply meters to customers at no cost.
Despite these efforts, the metering gap remains significant. Since the power sector’s privatization in 2013, only 3.03 million meters have been installed.
NERC data shows that, as of 2024, 6.15 million out of 13.33 million registered electricity customers have been metered, bringing the metering rate to 46.14%.
