The Federal Government has allocated N700 billion for the provision of free electricity meters under the Presidential Metering Initiative (PMI), aimed at addressing Nigeria’s 50% metering gap.
The funding will be sourced from monthly deductions from the federation revenue before it is allocated to federal, state, and local governments. According to the Federal Account Allocation Committee (FAAC) meeting minutes from April to August, N420 billion has already been saved, with monthly deductions of N100 billion. The first deduction of N120 billion was made in April to kick-start PMI funding.
Minister of Power, Adebayo Adelabu, previously announced that N75 billion would be used as seed capital, with the Nigerian Sovereign Investment Authority committing to invest at least N250 billion annually throughout the programme. Debt financing from financial institutions will also supplement the initiative.
Victor Ojelabi, Managing Director of the Abuja Electricity Distribution Company, noted that the PMI could unlock nearly N1 trillion in revenue from unmetered customers.
The Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for the 11 electricity Distribution Companies to provide meters to customers free of charge.
In an update on December 6, 2024, Bolaji Tunji, Special Adviser on Strategic Communications and Media to the Minister of Power, confirmed that the programme is progressing. The initiative targets the delivery of two million meters annually, with the first batch expected by the first quarter of 2025.
Tunji also revealed that procurement for the meters has started, with N700 billion already saved. Furthermore, he announced that 1.3 million meters under the World Bank Distribution Sector Reform Programme would be delivered this month, as part of a broader plan to distribute 3.2 million meters.
The initiative aims to significantly reduce Nigeria’s metering gap, improve transparency, and boost revenue generation in the electricity sector.
