By Gloria Ogbonna
The Nigerian Electricity Regulatory Commission's (NERC) latest third-quarter report revealed a significant issue in Nigeria's power sector: a staggering 7,117,167 power consumers remain without meters.
This data, up to September 30, 2023, underscores a substantial metering gap despite the installation of 504,729 meters by electricity distribution companies between January and September 2023.
Out of a total of 12,825,005 registered electricity customers, only 5,707,838 are metered. This disparity means over 7.1 million power users in Nigeria lack proper metering.
The report showcases a detailed analysis of meter installations during the first, second, and third quarters, totaling 504,729 meters. However, installations declined from 175,281 in the first quarter to 148,389 in the third quarter, signaling an ongoing metering deficit.
NERC's report highlights regional disparities in meter installations. The Ikeja, Abuja, and Ibadan Discos accounted for the most significant number of installations in the third quarter. Despite this, the total installations represented a decrease compared to the previous quarter.
Notably, the report emphasizes that the increase in net end-user metering rates between quarters was modest, rising by 0.35 percentage points from 44.16% to 44.51%.
The Meter Asset Provider framework led with 147,736 meters installed, while the National Mass Metering Programme installed 207 meters. However, the Vendor Financed framework recorded 446 meter installations, whereas no installations were recorded under the Disco Financed framework.
The sector attributes the low deployment of meters and other challenges to the ongoing liquidity crisis. The Minister of Power, Adebayo Adelabu, acknowledged the financing challenge within Nigeria's electricity supply business, emphasizing the need for long-term financing to reform the sector.
Addressing this at a recent power sector ministerial retreat in Abuja, the minister highlighted the need for collaborative solutions to alleviate the present liquidity challenges.
He emphasized attracting domestic institutional investors and reputable partners to develop innovative policies that elevate the risk profile of sector opportunities to attract investment. This initiative aims to secure robust financing across the entire electricity value chain and revolutionize the sector's financial capacities.
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