For Victor Uchenna, an operator of a barbershop in Lagos, electricity is both a lifeline and a constant source of frustration.
Every month, he braces himself for an estimated electricity bill that seems to climb higher regardless of how many hours he keeps his shop open.
“I hardly have power most days, yet they send me bills of N75, 000 or more each month,” he said. “I’ve been begging for a prepaid meter for years, but nothing has happened.”
Uchenna’s struggle echoes across Nigeria, where nearly half of electricity customers remain unmetered 11 years after the privatisation of the power sector.
Read also: FG to begin meter distribution under Presidential Metering Initiative in Q1 2025
Promises of Change, Lingering Challenges
When Nigeria’s power sector was privatised in late 2013, it was heralded as the dawn of a new era. The government handed over electricity generation and distribution to private firms with the expectation that they would modernise infrastructure, improve service delivery, and ensure fairness in billing.
However, a little over a decade later, the realities on the ground tell a different story.
Of the 12.5 million registered electricity customers in the country, approximately 6.2 million remain unmetered, according to data from the Nigerian Electricity Regulatory Commission (NERC).
For these unmetered customers, estimated billing remains the norm, and the dissatisfaction it breeds is palpable.
“We thought privatisation would solve the problems, but it feels like nothing has changed,” said Janet Osemeke, a schoolteacher in satellite town, Abuja.
“I have paid for a meter twice through my DisCo, but I still haven’t received it. They just keep billing me for power I don’t even use.”
Metering Initiatives
The Meter Asset Provider (MAP) Initiative was introduced by the Nigerian Electricity Regulatory Commission (NERC) in 2018.
Under the MAP framework, customers can purchase meters directly, with payment spread over monthly instalments, making them more accessible to low-income households.
“Unfortunately, the mass metering option recorded limited success due to the absence of risk mitigation mechanisms for payment defaults and the inability of the MAP to secure medium/long term financing with a tenor longer than five years,” Adetayo Adetuy, and Nnanke Williams at Brooks and Knights Legal said.
The limited success of the MAP Regulations, together with the desire of the Federal Government to, as a matter of urgency, close the metering gap for end-users, resulted in the federal government approving a policy intervention known as the National Mass Metering Programme in 2020.
Read also: How indigenous metering innovation is driving energy efficiency in Nigeria
The National Mass Metering Program (NMMP)
The National Mass Metering Programme (NMMP) was established in 2020. The intervention seeks to increase the metering rate, eliminate arbitrary estimated billing, strengthen the local meter manufacturing sector, job creation and reduction of collection losses.
A seed capital of ₦200 billion was invested to facilitate the Nigeria Electricity Supply Industry (NESI) revenue collections through the programme. Under Phase 0 of the NMMP, N59.280 billion was set aside for financing the installation of one million meters.
From inception to date, 89.96 percent of the funds allocated for NMMP under phase 0 has been disbursed to 11 Distribution Companies (DisCos) for the procurement of 962,832 metres through 23 Meter Asset Providers.
In 2021, the Muhammadu Buhari administration claimed to have provided four million meters under the scheme.
Apart from NMMP, and MAP, the ongoing interventions of the Presidential Metering Initiative (PMI), World Bank Distribution Sector Recovery Programme (DISREP), and Meter Acquisition Fund (MAF) have brought an inflow of over N335 billion, yet, Nigeria has not metered up to half of the registered customers.
“The NMMP was supposed to be a game-changer, but the progress has been painfully slow,” said Ahmed Adamu, an energy analyst. “What’s worse is that the programme has become politicised, with some communities receiving meters as favours rather than based on actual need.”
Yusuf Ali, commissioner for planning, research and strategy at the Nigerian Electricity Regulatory Commission (NERC) said the metering challenge is exacerbated by inadequate customer enumeration across DisCos.
During his presentation at the PwC’s Annual Power and Utilities Roundtable, where he spoke on the theme, ‘Reigniting hope in Nigeria’s electric power sector’ in Lagos, Ali said metering is the lifeblood of revenue recovery, “the effectiveness of tariff reforms will be imperiled by poor metering.”
Distribution of Meters
The federal government is expected to begin the distribution of meters to electricity customers by the first quarter of 2025 under the Presidential Metering Initiative (PMI). BusinessDay has learnt.
The federal government aims to close the metering gap as well as put an end to estimated billing in Nigeria by providing 10 million meters in five years.
Speaking with BusinessDay, Tunji Bolaji, special adviser to the minister of power on strategic communications and media, said: “We are still on course with the Presidential Metering Initiative and we expect delivery of meters to begin by the first quarter of next year. The plan is to distribute about two million meters next year and 10 million meters in five years and it will done in tranches.
“The government is working with the local manufacturers because the minister, in recent months, has had to inspect the local manufacturers to be sure they can deliver on the project. So we expect meters from the local manufacturers.”
He also disclosed that plans to roll out 3.2 million meters under the World Bank Distribution Sector Reform Program (DISREP) is on course and implementation is expected this month.
Read also: Kano DisCo to install 4,000 free prepaid meters
The Burden on Everyday Nigerians
For many Nigerians, the lack of meters translates into economic hardship. The high cost of estimated billing often forces families to make difficult choices between paying for electricity and covering other essential needs.
Small business owners like Uchenna bear the brunt of these challenges, as unreliable electricity and inflated bills eat into their already slim profit margins.
“I have had to increase the cost of haircuts just to cover my electricity bills,” he said. “But even then, customers complain, and I lose business. It feels like I’m being punished for wanting to work.”
Others resort to drastic measures to escape the cycle of estimated billing. Some disconnect themselves from the grid entirely, opting for expensive generators or solar power systems.
Meanwhile, electricity theft, fueled by frustration, has become rampant in unmetered areas, further complicating the power sector’s revenue challenges.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
