The metering of electricity customers in Nigeria continues to face significant challenges as the number of unmetered customers has surged to 7.3 million, according to the latest report from the Nigerian Electricity Regulatory Commission (NERC).
Out of the 13.16 million registered customers nationwide, only 672,539 were provided meters by electricity distribution companies, known as DisCos.
This slow progress in metering has left millions of customers dependent on the controversial estimated billing system, which has been a source of widespread complaints.
The data, released in NERC’s 2023 Annual Report in Abuja on Monday, highlights the urgent need for accelerated metering.
“As of December 31, 2023, only 5,842,726 (44.39%) of the registered 13.16 million customers in the Nigerian Electricity Supply Industry were metered,” the report stated.
The DisCos installed 672,539 end-use meters in 2023, with 25,847 under the National Mass Metering Program (NMMP) and 585,265 through the Meter Asset Provider (MAP) framework. Additional meters were installed via the Vendor Finance Metering and DisCo Financed frameworks.
Industry experts have raised concerns that the sluggish pace of metering could escalate billing disputes and deepen customer dissatisfaction.
Meanwhile, the report also revealed a significant reduction in electricity subsidies, dropping by 17.7% to ₦151.30 billion in 2023. “A Minimum Remittance Obligation (MRO) adjusted invoice of ₦858.03 billion was issued for energy costs and administrative services, while DisCos remitted ₦706.73 billion, leaving a deficit of ₦151.30 billion,” the report noted.
The federal government is set to pay around ₦180.8 billion in electricity subsidies for consumers in tariff Bands ‘B’ to ‘E’, which have been frozen since December 2022.
NERC has approved subsidy allocations for various DisCos, including ₦26.4 billion for Abuja, ₦23.76 billion for Ikeja, and ₦22.21 billion for Ibadan, among others. These payments are part of the government’s effort to ease the financial burden on consumers.
Additionally, NERC imposed fines of ₦8.3 billion on the 11 DisCos for overbilling customers and directed them to compensate affected consumers, as outlined in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) issued by NERC’s chairman, Sanusi Garba.
These developments continue to shed light on the pressing issues within the Nigerian power sector, raising questions about future policy directions and customer protection.
