ELECTRICITY: N1.5 Trillion on Metering Fails to Bring Relief to 7 Million Users
Despite a massive investment of N1.5 trillion in electricity metering, over seven million electricity consumers across Nigeria continue to face persistent challenges with power supply and billing accuracy. The government and power sector stakeholders had promised that the huge expenditure on metering would bring relief to consumers by ensuring accurate billing, reducing power theft, and improving overall electricity distribution. However, years after the investment, many households and businesses still grapple with erratic power supply, inflated bills, and unreliable metering systems.
This news story explores the reasons behind this ongoing electricity crisis, its impact on consumers, and the urgent need for reforms in Nigeria’s power sector.
In recent years, Nigeria’s electricity sector has been plagued by chronic issues such as power outages, inaccurate billing, and widespread electricity theft. To address these problems, the government, through the Nigerian Electricity Regulatory Commission (NERC) and the Distribution Companies (DisCos), launched an ambitious metering program aimed at installing prepaid and postpaid meters for all electricity consumers.
The program, which has seen an investment of approximately N1.5 trillion, was designed to:
Replace estimated billing with accurate metering.
Curb electricity theft and revenue losses.
Improve customer satisfaction by providing reliable billing.
Enhance the financial viability of DisCos.
Boost overall electricity distribution efficiency.
The expectation was that by providing meters to millions of households and businesses, consumers would finally enjoy uninterrupted power supply and transparent billing.
Despite the significant financial outlay, the reality for many Nigerians has been far from the promised relief. According to recent data from the Nigerian Electricity Regulatory Commission, about seven million consumers remain unmetered or face issues with faulty meters. This has led to a continuation of estimated billing, which many consumers describe as unfair and arbitrary.
One of the most pressing issues is the continued erratic power supply. Many consumers report frequent power outages lasting several hours or even days. This unreliability undermines the benefits of metering, as consumers are often billed for electricity they did not receive.
A Lagos-based small business owner, Mrs. Adebayo, lamented, “We were told the new meters would help us pay only for what we use, but the power goes off for days, yet the bills keep coming. It’s frustrating and unsustainable.”
The rollout of meters has been slow and uneven across the country. While some urban areas have seen better coverage, rural and semi-urban communities continue to wait for meters. Additionally, many consumers who have received meters complain about faulty or malfunctioning devices that either do not register consumption accurately or stop working altogether.
Mr. Emeka, a resident of Enugu, shared his experience: “My meter was installed last year, but it stopped working after three months. I reported it several times, but no one has come to fix it. Meanwhile, I’m still being billed based on estimates.”
Due to the shortage of functional meters, DisCos often resorts to estimated billing, which many consumers believe is inflated and arbitrary. This has led to widespread distrust between consumers and electricity providers.
Consumer advocacy groups have reported numerous cases where consumers receive bills that are several times higher than their actual usage. This has sparked protests and legal challenges in various parts of the country.
The failure to provide accurate metering has significant financial implications for both consumers and the power sector.
For consumers, inaccurate billing means paying more than their fair share for electricity. Many low-income households, already struggling with economic hardship, find it difficult to settle inflated bills, leading to disconnections and further hardship.
Ms. Fatima, a single mother in Kano, expressed her frustration: “I try to pay my bills, but sometimes they are so high that I have to choose between electricity and food for my children.”
On the other hand, DisCos suffers revenue losses due to electricity theft and non-payment by consumers who dispute their bills. The lack of reliable metering makes it difficult for DisCos to collect payments efficiently, affecting their ability to maintain and upgrade infrastructure.
Industry experts warn that without addressing these issues, the financial viability of the power sector remains at risk, potentially leading to further deterioration of services.
In response to these challenges, the government and regulatory bodies have taken several steps to accelerate the metering program and improve service delivery.
One notable initiative is the introduction of the Meter Asset Provider (MAP) model, which allows private companies to invest in meter procurement and installation. This public-private partnership aims to increase meter availability and reduce the financial burden on DisCos and the government.
The MAP model has shown some promise, with increased meter installations in certain regions. However, challenges remain in ensuring quality control and timely maintenance.
NERC has also intensified regulatory oversight, issuing directives to DisCos to improve billing accuracy and customer service. Consumer protection agencies have been empowered to investigate complaints and mediate disputes Despite these efforts, enforcement remains weak, and many consumers still feel neglected.
The electricity crisis has profound social and economic consequences for millions of Nigerians.
Frequent power outages and unreliable metering disrupt businesses, especially small and medium enterprises (SMEs) that rely on electricity for operations. This leads to reduced productivity, job losses, and increased costs as businesses resort to expensive alternatives like generators.
Mr. Chukwu, owner of a printing shop in Abuja, explained, “Without reliable electricity, I lose customers every day. The cost of running a generator is high, and the bills don’t match the power we get.”
Inadequate electricity supply also affects health facilities and schools, compromising essential services. Clinics struggle to power medical equipment, and schools find it difficult to provide conducive learning environments.
The frustration caused by electricity issues has occasionally sparked protests and social unrest. Consumers demand accountability and transparency from power providers and the government.
To address the ongoing electricity challenges, experts and stakeholders recommend a multi-faceted approach:
Accelerate Meter Deployment: The government and DisCos must prioritize rapid and widespread installation of reliable meters, especially in underserved areas.
Improve Meter Quality and Maintenance: Establish strict standards for meter quality and ensure timely repair or replacement of faulty meters.
Enhance Consumer Engagement: Increase transparency in billing and provide accessible channels for consumers to report issues and resolve disputes.
Strengthen Regulatory Enforcement: Empower NERC and other agencies to enforce compliance and penalize errant DisCos.
Invest in Infrastructure: Beyond metering, invest in upgrading generation, transmission, and distribution infrastructure to improve overall power supply reliability.
Promote Alternative Energy Solutions: Encourage the adoption of renewable energy and off-grid solutions to reduce dependence on the national grid.
The promise of improved electricity services through a N1.5 trillion investment in metering remains unfulfilled for millions of Nigerians. While the initiative was well-intentioned, systemic issues such as poor implementation, faulty equipment, and weak regulatory enforcement continue to undermine progress.
For Nigeria to realize the full benefits of its power sector reforms, urgent and coordinated action is needed to ensure that every consumer has access to accurate metering and reliable electricity supply. Only then can the country hope to break free from the cycle of power woes that have long hindered its economic and social development.