Eleven power distribution companies (DisCos) in Nigeria have obtained a total of N53.3 billion in credit from the Central Bank of Nigeria’s National Mass Metering Programme (NMMP). The initiative, which began in 2020, aimed to supply 962,832 electricity meters across the country’s six geopolitical zones. As of September 2023, 883,511 meters had been installed.
The NMMP has had a positive impact on DisCos’ monthly revenue collection, increasing from N42 billion in 2020 to over N72 billion by the end of 2022. This increase in revenue has been crucial for the power sector, which has received over N2.3 trillion in intervention loans from the CBN.
The NMMP was initiated to address Nigeria’s metering shortfall and eliminate estimated billing practices. It was funded solely by the CBN and has been labelled as performing, despite facing challenges such as commercial and collection losses and a metering gap of over 7 million.
The programme has created 4,691 jobs through the engagement of meter installers and technicians. It has also facilitated the procurement and installation of 883,511 electricity meters, with N3.4 billion of the loan repaid as of September 2023, leaving an outstanding balance of N49.3 billion.
Ibadan and Abuja DisCos received the highest amounts from the NMMP, with N6.1 billion and N6 billion respectively. Ikeja, Enugu, and Kano DisCos rounded up the top five, each receiving over N5 billion.
Despite these efforts, Nigeria’s power sector continues to face challenges such as poor electricity supply, aging infrastructure, infrastructural deficits, and a lack of investment. Approximately 58 per cent of registered electricity consumers in the country are without meters, leading to the recent issuance of a N10.5 billion fine by the Nigerian Electricity Regulatory Commission (NERC) to DisCos for non-compliance with capping estimated billing for unmetered customers.
Nairametrics