The Federal Government has announced a significant initiative to deploy seven million electricity meters across Nigeria. This move is part of a broader reform agenda designed to eradicate estimated billing, enhance revenue collection for power distribution companies, and rebuild trust within the nation's power sector.
This metering drive comes as the national metering coverage has reached about 57 percent, a notable increase in efforts to bridge the gap that has left many consumers facing disputed and estimated electricity bills. Olu Verheijen, Special Adviser to the President on Energy, revealed these plans during a Nigerian-British Chamber of Commerce (NBCC) energy conference held in Lagos.
Verheijen stated that the seven million-meter deployment will be executed through a presidential metering initiative and a separate program supported by the World Bank, both aimed at accelerating meter distribution nationwide. She emphasized that metering is crucial for consumer protection, reducing estimated billing, and fostering the commercial discipline required for investment in the sector.
The conference, themed “Energy in Nigeria: From Potential to Reality,” gathered key stakeholders, including policymakers, regulators, investors, and energy companies, to discuss strategies for attracting investment and advancing Nigeria’s energy transformation. The metering program is expected to increase transparency in electricity billing, improve collection rates for distribution companies, and contribute to the financial sustainability of the power sector.
Estimated billing has long been a contentious issue in Nigeria's electricity market, leading to widespread consumer dissatisfaction and eroding confidence in power distribution companies. The government views this expanded metering drive as a vital component of its efforts to stabilize the electricity value chain and attract new investments.
In parallel, the Federal Government has approved a power sector debt reduction program valued at up to N4 trillion to settle verified obligations owed to electricity generation companies (GenCos) and gas suppliers. Verheijen noted that settlement agreements totaling approximately N2.3 trillion have been executed, with the first bond issuance of N501 billion being oversubscribed. A second tranche of N729 billion is anticipated soon.
This intervention is described as a strategic reset intended to restore liquidity, boost investor confidence, and create a more bankable electricity market. Alongside metering reforms, authorities are implementing tariff adjustments to improve cost recovery. Approximately 45 percent of the electricity market now operates under cost-reflective tariffs tied to service quality, while subsidy arrangements are being redesigned to safeguard vulnerable consumers.
These reforms are projected to reduce the government's electricity subsidy obligations by an estimated N1 trillion, freeing up resources for infrastructure development and social programs.
