Nigeria’s power sector is embarking on a significant drive to address the persistent challenge of electricity meter shortages, aiming to bridge the estimated seven million metering gap. The Federal Government, through the Ministry of Power, has announced the imminent arrival of the first batch of meters procured under the Distribution Sector Recovery Programme (DISREP). This initial consignment of 75,000 meters is expected in April 2025, followed by an additional 200,000 meters in May, marking the beginning of a larger effort to deploy over three million meters by 2026. This initiative is a crucial step towards ensuring accurate billing and revenue collection, while simultaneously empowering consumers with greater control over their energy consumption. While acknowledging the existing metering deficit, the government emphasizes ongoing efforts to accelerate meter deployment and highlights the substantial progress already made, with over 5.5 million customers metered as of December 2024.
The DISREP is a multifaceted program employing various procurement strategies to achieve its ambitious metering targets. These include International Competitive Bidding (ICB) for a significant portion of the meters, alongside National Competitive Bidding, ensuring a transparent and competitive process. The program aims to procure 1,437,501 meters through ICB1, another 217,600 through national bidding, and an additional 1,550,000 meters through ICB2. This diversified approach aims to leverage both international expertise and local manufacturing capabilities, contributing to the development of the domestic meter manufacturing industry and creating employment opportunities. The phased rollout of meter installations under DISREP demonstrates a structured approach to tackling the metering gap, with clear timelines and procurement targets established.
Complementing the DISREP is the Presidential Metering Initiative (PMI), a substantial financial intervention backed by N700 billion secured from the Federation Account Allocation Committee (FAAC). This initiative underscores the government’s commitment to addressing the metering challenge and providing the necessary resources for its effective implementation. The PMI aims for a sustained and impactful deployment of two million meters annually over a five-year period. A dedicated special purpose vehicle has been established to oversee the PMI, ensuring efficient management and execution of the program. This focused approach aims to significantly accelerate meter deployment beyond the current average of approximately 668,000 meters installed annually.
The PMI’s ambitious target of two million meters per year for five years demonstrates a commitment to rapidly closing the metering gap and transforming the electricity distribution landscape. The tender for the first batch of two million meters under the PMI is anticipated to be released by the third quarter of 2025, further solidifying the government’s commitment to this initiative. The combination of DISREP and PMI represents a comprehensive and strategic approach to addressing the metering challenge, leveraging both structured procurement and substantial financial backing. This dual approach aims to create a sustainable and impactful solution to the metering deficit, ensuring long-term benefits for both consumers and the power sector.
The government’s strategic approach incorporates both short-term and long-term measures. The immediate focus is on deploying meters procured under the DISREP, providing tangible results in the near future. Concurrently, the PMI establishes a framework for sustained meter deployment over the coming years, ensuring a consistent and impactful effort to address the metering gap. This combined strategy provides a clear roadmap for achieving significant progress in metering and transforming the electricity distribution landscape. The government’s commitment to transparency and accountability is evident in the structured procurement processes and the establishment of a dedicated entity to oversee the PMI.
These initiatives are projected to significantly alter Nigeria’s metering landscape by the end of 2025 and beyond, bringing about a more efficient and transparent electricity distribution system. The anticipated improvements in metering are expected to benefit both consumers and the power sector. For consumers, access to meters will ensure accurate billing and empower them to manage their energy consumption effectively. For the power sector, increased metering will enhance revenue collection, reduce losses, and contribute to the overall financial viability of the industry. The government’s proactive approach to tackling the metering challenge signifies a positive step towards a more sustainable and efficient power sector in Nigeria.
