Nigeria’s Metering Strides in Q4 2024: A Detailed Analysis
The Nigerian Electricity Regulatory Commission (NERC) reported significant progress in electricity meter installations during the final quarter of 2024. A total of 185,439 meters were deployed across various distribution companies (DisCos), reflecting a marginal increase of 0.19% compared to the preceding quarter. This modest growth contributed to an overall improvement in the national metering rate, rising by 0.42 percentage points to reach 46.57% by the end of the year. The Meter Asset Provider (MAP) framework continued to dominate the installation landscape, accounting for the vast majority (96.56%) of new meters. Other initiatives like the Meter Acquisition Fund (MAF), Vendor Financed, and DisCo Financed frameworks also contributed, albeit on a smaller scale. This multi-pronged approach underscores a concerted effort to address Nigeria’s persistent metering gap and enhance electricity service delivery.
A closer examination of individual DisCo performance reveals a varied metering landscape. Ibadan Electricity Distribution Company (IBEDC), serving a large customer base of 2.64 million, reported 1.15 million metered customers. Ikeja Electric demonstrated a higher metering penetration, with nearly one million meters deployed among its 1.28 million customers. Similarly, Abuja DisCo achieved significant progress, metering 911,000 out of its 1.19 million customers. However, Benin DisCo lagged behind, with only 714,000 metered connections out of a total customer base of 1.43 million. Yola DisCo, with a significantly smaller customer base of 823, reported a comparatively low metering figure of 112. These varying rates highlight the need for targeted interventions to accelerate metering progress across all DisCos, ensuring equitable access to pre-paid metering services.
NERC’s commitment to closing the metering gap is evident in its promotion of a diversified framework strategy. The commission encourages DisCos to leverage all available mechanisms, including the MAP and MAF regulations, to expedite meter deployment. This approach acknowledges the complexity of the metering challenge and the need for flexibility in addressing the specific needs of different DisCos and customer segments. The emphasis on customer protection is further reinforced by NERC’s imposition of monthly energy caps for unmetered customers, safeguarding them from potential exploitation due to estimated billing. This measure not only protects consumers but also incentivizes DisCos to accelerate metering programs, as it directly impacts their potential revenue collection.
The importance of comprehensive customer enumeration and robust metering infrastructure is underscored by NERC’s focus on these areas as key drivers for improved energy accounting and revenue recovery. Accurate customer data and widespread meter deployment are fundamental to optimizing the efficiency of the electricity distribution system, reducing losses, and ensuring the financial viability of the sector. By prioritizing these aspects, NERC aims to establish a solid foundation for a more sustainable and transparent electricity market. The MAF initiative, operationalized in the second quarter of 2024, specifically targets Band A customers, prioritizing those with the highest consumption levels. DisCos were directed to utilize the initial tranche of MAF funds to procure and install meters for this customer segment, aiming to maximize impact and improve revenue assurance.
By December 2024, DisCos had successfully metered over 4,000 Band A customers under the MAF scheme. While this represents a positive step, the scale of deployment needs significant acceleration to achieve widespread metering coverage. The continued focus on prioritizing Band A customers, however, strategically addresses both revenue generation and service reliability. The success of the MAF program will be crucial in demonstrating the effectiveness of targeted funding mechanisms in driving metering progress. Future expansion of the MAF initiative and continued reliance on the MAP framework will be essential in achieving universal metering and enhancing the overall efficiency of the Nigerian electricity sector.
The progress made in Q4 2024 highlights the collaborative efforts between NERC and DisCos in addressing the metering challenge. Continued implementation of existing frameworks, strategic deployment of available funds, and a sustained focus on customer protection are essential to achieving universal metering and transforming the Nigerian electricity sector. The journey towards a fully metered electricity market requires sustained commitment, innovative solutions, and continuous monitoring to ensure that all customers have access to reliable and accurately measured electricity services.
