- The Minister of Power has highlighted the challenges of accurately determining the number of electricity customers in Nigeria.
- Although progress on the Presidential Metering Initiative has been slow, the procurement process would be expedited even if meters must be imported.
The Minister of Power, Adebayo Adelabu, has highlighted the challenges of accurately determining the number of electricity customers in Nigeria, emphasising that the country has yet to establish a reliable database.
He stated this while responding to the recommendation from the panel session at the unveiling of Nigeria’s National Integrated Resource Plan (NIRP), which aims to strengthen the grid and provide a secure, least-cost power supply. The NIRP targets reducing the Loss of Load Expectation (LOLE) from 100 hours per year in 2024 to 24 hours per year by 2035. It also requires 900 MW of spinning reserves to maintain grid stability.
He revealed that efforts are underway to filter and refine the data to better understand the metering gap, enabling a more precise and accurate picture of active, inactive, and newly connected customers. According to the minister, the Integrated Resource Plan (IRP) will play a pivotal role in ensuring reliable data is available.
He stressed the critical importance of addressing the metering gap, asserting that no meaningful reforms can be achieved in the electricity sector without it. Proper metering, he explained, is vital for customers to manage their energy consumption effectively.
Although progress on the Presidential Metering Initiative has been slow, the minister noted that the procurement process would be expedited with the availability of funds, even if meters must be imported.
He acknowledged the limited local manufacturing capacity, pointing out that while Nigeria only has completely knocked-down meters (CKD) and semi-knocked-down meters (SKD) assemblers for certain types of meters, the country could benefit significantly from encouraging local content, such as the completely knocked-down meter, which has up to 60 per cent local content.
According to him, this would create jobs, utilise local materials, and be more cost-effective compared to imports, especially amid foreign exchange pressures.
To address the metering gap in the short term, the minister confirmed that Nigeria would need to import meters while continuing to work with the Meter Manufacturers Association of Nigeria. He also revealed that a portion of the meters would be sourced locally as part of a strategy to balance both local production and imports.
Speaking on the transmission issue, the minister acknowledged the high costs involved in upgrading the transmission grid, which he noted is a critical component of the power sector currently under government support. He emphasised that the transmission grid, which is over 50 years old and serving over 50 million people, requires significant revamping before it can be expanded.
Due to the high transmission infrastructure costs, the government is seeking private sector investment to help fund the necessary upgrades. However, this requires a well-structured and systematic approach to ensure cost recovery. He stated that while there are investors with solid funding, but the lack of a clear framework for modular investment in the transmission grid has hindered progress. This will be a key focus for the year ahead.
Additionally, the minister pointed out that the completion of the Supervisory Control and Data Acquisition (SCADA) system for remote grid management is imminent. However, he noted that enhanced forecasting capacity, which the country currently lacks, is needed for effective grid planning and management.
He stressed that for the power sector to attract significant private sector investment, both local and foreign, the sector must move towards full commercialisation and reduce its reliance on government intervention and subsidies.