Nigeria’s metering gap widens as estimated billing customers rise by 10%

Nigeria’s efforts to tackle its chronic electricity metering gap appear to be faltering, with a new report revealing a 10 percent increase in customers on estimated billing in the first quarter of 2024.

The Nigeria Electricity Report by the National Bureau of Statistics (NBS) for the first quarter of 2024 shows a 10 percent quarter-on-quarter increase in estimated billing customers, as the metering gap widens.

The number of customers on estimated billing rose from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a notable 10 percent increase.

The rise in estimated billing customers is equally significant on a year-on-year basis. From Q1 2023 to Q1 2024, the number of estimated billing customers increased by 8% from 5.96 million.

This increase occurs as the government continues to subsidize customers not on Band A, while Band A customers on estimated billing are still required to pay based on estimation.

It further highlights a persistent issue within the Nigerian electricity sector the inability to adequately meter all customers to bridge the metering gap despite various initiatives, leading to reliance on estimated billing.

Ibadan Electricity Distribution Company (IBEDC) recorded the highest number of estimated billing customers, with 1.41 million in Q1 2024, up from 1.37 million in the previous quarter. Enugu Electricity Distribution Company (EEDC) also saw a significant increase, reaching 765,662 customers from 709,104 in Q4 2023.

The reliance on estimated billing is a contentious issue, often leading to disputes between consumers and DISCOs. Many consumers feel the estimates are inflated and do not reflect their actual consumption, leading to calls for more accurate metering.

The Nigeria Electricity Regulatory Commission (NERC) fined 11 electricity distribution companies 5 billion over non-compliance with mandatory capping of estimated billing of unmetered customers.