FG Discloses Number of Free Prepaid Meters Shared to Nigerians, Blames DisCos for Slow Distribution
- The federal government blamed DisCos for the slow installation of prepaid meters for Nigerians
- The government disclosed the number of smart meters installed under the DISREP programme so far
- The DISREP programme aims to install 3.2 million meters over four years at no cost to consumers
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government said it has installed only about 200,000 smart electricity meters under the $500 million World Bank-backed Distribution Sector Recovery Programme (DISREP), despite the delivery of hundreds of thousands of meters into the country.
Officials disclosed this on Wednesday, February 4, in Abuja, admitting that meter deployment by electricity distribution companies (DisCos) has been slower than expected, PUNCH reported.
Source: UGC
According to representatives of the Bureau of Public Enterprises (BPE) and other power sector agencies, nearly 700,000 meters have already arrived in Nigeria under DISREP, a programme designed to reduce Nigeria’s estimated 5.66 million-meter metering gap, but installations have lagged significantly.
The update was provided at a press briefing led by BPE Director-General Ayodeji Gbeleyi, with stakeholders including the Nigerian Electricity Regulatory Commission (NERC), the Ministry of Power, the National Mass Metering Initiative, and managing directors of DisCos in attendance.
DISREP a major intervention in Nigeria’s power sector
Gbeleyi described DISREP as a major intervention in Nigeria’s power sector, saying the programme allows the country to procure meters in large volumes to improve billing accuracy and consumer confidence.
He explained that both the meters and their installation are provided to customers at no cost, with payments already made to contractors. According to him, cost recovery is structured under the Multi-Year Tariff Order and regulated by NERC.
3.2m smart meters to be installed in 4 years
Gbeleyi said DISREP targets the installation of 3.2 million smart meters over four years through a mix of international and local competitive procurement.
He noted that phase one involves the importation of about 1.44 million meters, including single- and three-phase units, with roughly 700,000 already delivered, while local manufacturers are supplying an additional 217,000 units.
He noted that Phase two will cover the importation of another 1.55 million meters, adding that closing the metering gap remains a national priority.
“The process involves multiple agencies, including NEMSA, TCN and NEC, which are responsible for testing and verifying meters before deployment,” he said.
Current installation figures disappointing
Also speaking, the Chief Technical Adviser to the Minister of Power, Adedayo Olowoniyi, described the current installation figures as disappointing, estimating that only between 150,000 and 200,000 meters have been deployed so far.
He said DISREP is critical to fixing Nigeria’s electricity distribution segment, which is widely regarded as the weakest part of the power value chain.
According to him, customers are not expected to pay for the meters, as mechanisms already exist for cost recovery, similar to other grid assets, with emphasis on efficiency and low-cost financing.
NERC Chairman, Musiliu Olalekan Oseni, highlighted the importance of metering in restoring trust between electricity consumers and utilities.
He said meters provide revenue assurance for DisCos while giving customers confidence that they are being billed correctly, adding that the briefing was partly aimed at addressing misinformation surrounding the programme.
Officials also noted that DISREP complements other initiatives such as the Presidential Metering Initiative and the Meter Acquisition Fund, all aimed at accelerating nationwide meter deployment.
Under its financing structure, the World Bank is providing $500 million in concessional funding, split between investment in meters, data systems and technical assistance, and a results-based component focused on performance and governance reforms.
Source: Getty Images
DISREP to improve electricity distribution efficiency
BPE’s Director of Energy Sector, Aisha Tukur, said DISREP goes beyond metering, stressing that the programme is designed to improve operational efficiency, financial sustainability and transparency across the electricity value chain.
Despite assurances from regulators, officials acknowledged that slow deployment by DisCos remains a major challenge, with hundreds of thousands of meters yet to be installed.
While DisCo chief executives pledged to speed up installations, they also warned consumers against meter bypass and tampering, noting that such practices undermine revenue collection and worsen the sector’s challenges.
FG takes $500m World Bank loan for power sector
Legit.ng earlier reported that the World Bank approved Nigeria’s $500 million DISREP in February 2021 to support large-scale metering, strengthen governance and improve service delivery in the electricity distribution segment.
Amid soaring debt, the federal government assured that the loan would revamp Nigeria’s embattled power sector by funding improvements in metering, data systems, and technical efficiency of power distribution companies (DisCos).
The DisCos have long faced criticism for poor performance, overestimated billing, and inability to provide stable electricity to households and businesses.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
