• Progress slow despite deregulated metering, multiple funding 
• Stakeholders raise concerns over regulatory weaknesses, corruption

The sluggish progress of end-user metering by distribution companies (DisCos) may keep most consumers under arbitrary billing for another decade or more.  This comes as all the DisCos, despite funding from the Federal Government and a deregulated metering scheme, were only able to meter only 542,738 customers in 2024, leaving the number of customers placed on estimated billing at a staggering 7.2 million. 
  
In 2023, 609,585 customers were metered while the number dropped to 542,738 last year. In 2021 and 2022, 672,539 and 850,000 meters were installed respectively, putting average yearly installations at 668,715 units.  
  
This means that, if metering continues to grow at this rate, it would take about 10 years and 10 months (approximately 11 years) to plug the 7.2 million gap.
This even excludes the new customers that would be onboarded going forward.  
 
As of November 2024, DisCos along with their meter providers increased the cost of a single-phase meter to between N135,987.5 and N161,035, while a three-phase meter was pegged between N226,600 and N266,600.
 
With the increase, the average cost of a single-phase meter is N148,511, while the average cost of a three-phase meter is N246,600.  At N197,555 average cost of a meter (drawing from the cost of both single and three-phase units), Nigerians may spend N1.4 trillion, at current pricing, in 13 years to plug the hole. 
 
Quarterly reports of the Nigerian Electricity Regulatory Commission (NERC) between January and December 2024 showed that all the DisCos are below par in the metering race.  
  
Data from the NERC indicated that as of 31 December 2024, only 6,288,624 customers, representing 46.57 per cent of the total 13,503,342 registered electricity users, had been metered.This leaves over 7.2 million consumers vulnerable to what has long been criticised as an arbitrary and often exploitative system.
 
In November last year, the Federal Government received a $500 million credit from the World Bank to boost the financial and technical capacity of DisCos. The bulk of the fund was meant to be spent on metering.  
  
In mid-2023, the World Bank had similarly launched a scheme to provide 1.2 million meters at $155 million. Another N21 billion was arranged under the Meter Asset Financing (MAF), which is being contributed by end-user tariff throw the Nigerian Electricity Regulatory Commission (NERC).  
  
Besides, the Federal Government, under this administration, had allocated a total of N700 billion to the Presidential Metering Initiative (PMI), which is funded partly from the Federal Account Allocation and N59.3 billion under the National Mass Metering Programme. 

AN analysis of quarterly metering trends in 2024 reveals significant fluctuations in installation rates. In the first quarter, DisCos installed 123,604 meters, marking a 7.31 per cent increase compared to the previous quarter. However, the modest growth was short-lived, as the number of new meters fell drastically to 49,188 in the second quarter, representing a steep 60.86 per cent decline.
 
The third quarter saw a reasonable resurgence, with installations rising sharply by 256.01 per cent to 184,507, nearly four times the second-quarter figure. The final quarter recorded a marginal increase of 0.19 per cent, with 185,439 meters installed, sustaining the momentum seen in the previous quarter.
 
However, the rate of metering in 2023 was still higher than in 2024. Ikeja, Ibadan and Abuja DisCos consistently recorded the highest number of meter installations throughout the year.
 
Metering efforts were not uniform across all DisCos, with some, such as Port Harcourt and Yola, experiencing sharp declines in deployment at various points. The inconsistency highlights the uneven progress in closing the metering gap across different regions, raising concerns about the operational efficiency and commitment of some DisCos to achieving universal metering.
  
With the sector suffering a significant liquidity burden with tariff and market shortfalls hovering around N2 trillion in 2024 alone, there is a positive correlation between improved metering rate and revenue collection efficiency across DisCos.  
 
The metering efforts in 2024 were largely driven by the Meter Asset Provider (MAP) framework, which accounted for 96.56 per cent of installations in the fourth quarter. The newly introduced Meter Acquisition Fund (MAF), designed to provide long-term financing for meter procurement, facilitated the installation of 4,076 meters in the same period.

MEANWHILE, vendor-financed and DisCo-financed schemes accounted for a much smaller share of the total, contributing just over three per cent of the meters deployed in the fourth quarter. A notable observation was the complete halt in meter installations under the National Mass Metering Programme (NMMP) in the third and fourth quarters, suggesting that allocations under this scheme had been exhausted in most DisCo areas.
  
Despite these metering efforts, the fact that more than half of Nigeria’s electricity consumers remain unmetered continues to fuel complaints about excessive and estimated billing regime.
 
Consumer advocacy groups had persistently called on the NERC to impose stricter deadlines on DisCos to bridge the metering gap. Although the introduction of MAF is expected to accelerate meter deployment, its impact remains uncertain, particularly given the historical inconsistencies in the implementation of metering initiatives in Nigeria.
 
The marginal decline in metering numbers in 2024, despite regulatory interventions, shows the persistent structural challenges in the electricity sector. Unless the pace of metering is significantly accelerated and backed by strict enforcement, millions of Nigerian consumers may continue to bear the burden of non-transparent and often disputed electricity bills.

WHILE the slow pace of prepaid meter deployment in Nigeria continues to frustrate electricity consumers, experts and industry stakeholders blamed DisCos, financial constraints and weak regulatory enforcement for the lingering metering gap.
  
Former President of the Chartered Institute of Bankers of Nigeria and Economics Professor at Babcock University described the situation as deliberate, arguing that DisCos benefit from estimated billing, which guarantees them revenue even when they fail to supply electricity.
  
“Without providing power, DisCos have nothing to lose, which removes any urgency to speed up metering,” he said. He called for government intervention, suggesting that metering should be outsourced to independent consultants under strict deadlines, with penalties for DisCos that fail to comply.
Consumer advocate Adetayo Adegbemle criticised past government interventions, including the National Mass Metering Programme (NMMP), for lacking accountability. He pushed for private sector involvement with clear paths to cost recovery.    
  
“Contractors are losing faith in dealing with DisCos and their management. The government must ensure that Meter Service Providers recover their investments directly from source, independent of DisCos,” he said.
  
An energy analyst, Lanre Elatuyi, highlighted financial constraints as a major barrier. He noted that funds allocated to metering are insufficient, while DisCos, struggling with bad credit ratings, cannot access the capital needed to close the metering gap.  He suggested an approach where consumers pay for meters, with costs recovered through energy credits, provided there is transparency in the process.

The current meter market through the MAPs already offered people the option canvassed by Elatuyi but the cost of metering given the current exchange rate and inflation is above average for Nigerians. The Managing Director of Momas Electricity Meters Manufacturing Company Limited (MEMMCOL), Abiodun Hammed, acknowledged Nigeria’s growing population as a challenge but expressed optimism that the current administration’s efforts would significantly reduce the metering gap within the next two to three years.

However, government efforts appear to be falling behind schedule. Special Adviser to the Minister of Power on Strategic Communications and Media, Tunji Bolaji, previously stated that the initial two million meters under the DISREP and PMI schemes would be procured by February. At the beginning of April, there is yet no known concrete plan for its take-off. 
 
The ministry now expects meter supply by the third quarter of 2025, citing the need for testing and training of installers as causes for the delay. Electricity market analyst, Dr Abubakar Ibrahim, who is also the founder of Empower Consult Africa, while outlining further obstacles, including financial constraints, high production costs, FX volatility said there is a lack of cooperation between DisCos, regulators, and contractors. 

He urged the government to introduce flexible payment plans for consumers and offer incentives to private investors to accelerate metering.

Renowned energy scholar, Prof Wunmi Iledare argued that solving the problem starts with correctly identifying its root causes.  

“If funding is the issue, make meters available and let consumers pay through energy credits. If meter availability is a problem, empower local manufacturers. If corruption or lack of transparency is the problem, NERC must enforce stricter regulations and sanctions,” he said.