"Metering Protects Consumers": No More Estimated Billings as FG Rolls Out 7 Million Metres
- The FG plans to deploy 7 million electricity meters nationwide to reduce estimated billing and improve transparency in the power sector
- The initiative will be implemented through the Presidential Metering Initiative and a World Bank-supported programme
- The government is also rolling out tariff reforms aimed at improving liquidity, attracting investment, and reducing subsidy costs
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Federal Government has announced plans to deploy seven million electricity meters across Nigeria in a renewed push to eliminate estimated billing, boost revenue collection, and strengthen confidence in the country's power sector.
Speaking at an energy conference organised by the Nigerian-British Chamber of Commerce in Lagos, the Special Adviser to the President on Energy, Olu Verheijen, said the initiative will be executed through the Presidential Metering Initiative and a separate programme supported by the World Bank.
Source: Getty Images
She said:
“Metering protects consumers. It reduces estimated billing and it builds the commercial discipline that investment requires.”
The move comes as national metering coverage has risen to about 57%, reflecting progress in efforts to reduce the long-standing metering gap affecting millions of electricity consumers.
Drive to end estimated billing
According to the government, the large-scale meter rollout is designed to protect consumers from arbitrary billing practices while improving transparency across the electricity market.
Officials noted that wider metering coverage will help distribution companies improve revenue collection and create the commercial stability needed to attract more investment into the sector.
Estimated billing has remained one of the most controversial issues in Nigeria’s power industry for years, triggering frequent disputes between electricity customers and distribution companies.
Authorities believe the expanded metering programme will help rebuild trust and improve service delivery across the value chain.
N4 trillion debt settlement programme underway
As part of broader reforms, the Federal Government has also approved a debt reduction scheme valued at up to N4 trillion to clear verified liabilities owed to electricity generation companies (GenCos) and gas suppliers.
Verheijen disclosed that settlement agreements worth approximately N2.3 trillion have already been executed.
She added that the first bond issuance of N501 billion under the programme attracted strong investor demand, while a second tranche worth N729 billion is expected to be launched soon.
The government described the intervention as a critical step toward restoring liquidity and improving the sector’s financial health.
Tariff reforms expected to cut subsidy burden
Alongside metering and debt restructuring efforts, the government is implementing tariff reforms aimed at improving cost recovery within the electricity market.
About 45% of the market now operates under cost-reflective tariffs tied to service quality standards, while subsidy mechanisms are being redesigned to shield vulnerable consumers.
Source: Getty Images
Officials said the reforms could reduce projected electricity subsidy spending by roughly N1 trillion, creating room for increased investment in infrastructure and other social development programmes.
The administration maintains that the combined reforms are intended to build a more sustainable, investor-friendly, and reliable power sector for Nigeria.
Source: Legit.ng
