Federal Government and CBN to Finance Four Million Prepaid Meters Locally

by Ikem Emmanuel

In a collaborative effort between the Federal Government of Nigeria and the Central Bank of Nigeria (CBN), a plan to finance the local production of four million prepaid electricity meters has been unveiled. This initiative aims to address the metering gap in the country, improve customer satisfaction, enhance energy accounting, and ensure revenue assurance in the Nigerian Electricity Supply Industry (NESI).

The 2022 Market Competition Report by the Nigerian Electricity Regulatory Commission (NERC) provides insights into this significant project. The report indicates that the financing of the production of these meters will follow the completion of Phase 0 of the National Mass Metering Programme (NMMP), which involves the rollout of approximately one million meters.

Bridge the Metering Gap

The NMMP is a vital component of the Federal Government’s efforts to bridge the metering gap in Nigeria. It not only aims to provide accurate billing but also seeks to cushion the impact of the service-reflective tariff on electricity consumers in the country.

Electric Bill: See How Many Free Meter FG Are Set to Give Out

Under Phase 0, which commenced in October 2020, the federal government successfully installed around 900,000 free prepaid meters for electricity customers, close to its target of one million. Now, Phase 1 of the NMMP is set to be initiated, which involves the procurement of four million meters from local meter manufacturers and assemblers.


Securing Financing

The initiative also includes the creation of a meter acquisition fund, which aligns with the December 2022 Tariff Order. This fund will serve to mitigate the risk of financing outside the electricity market. The report notes that the fund will be administered centrally by a Fund Manager approved by the NERC. It will be utilized to secure long-term financing for meter deployments, ultimately closing the metering gap in the NESI.

Enhancing the Power Sector

Metering customers remains a top priority for NESI, as it plays a crucial role in improving customer satisfaction, accurate energy accounting, revenue assurance, and the overall financial viability of the power sector. By providing a more accurate billing system and increasing meter accessibility, this initiative is set to significantly benefit both electricity consumers and the power sector.

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