- Nigeria faces a metering crisis, with 7.3 million customers unmetered. Only 672,539 of over 13 million registered users have received meters, leaving many reliant on estimated billing.
- The Nigerian Electricity Regulatory Commission has fined DisCos ₦8.3 billion for overcharging customers and mandated compensation.
Metering electricity customers in Nigeria remains a significant challenge, with the number of unmetered customers increasing to 7.3 million. According to the latest report from the Nigerian Electricity Regulatory Commission (NERC), only 672,539 out of over 13.16 million registered customers have been metered by electricity distribution companies (DisCos). This slow pace of metering has left many customers dependent on the controversial estimated billing system.
As of December 31, 2023, just 5,842,726 customers, approximately 44.39% of the Nigerian Electricity Supply Industry registered customers, were metered. In 2023, DisCos installed a total of 672,539 meters, with 25,847 under the National Mass Metering Program (NMMP), 585,265 through the Meter Asset Provider (MAP) framework, and 6,912 via the Vendor Finance Metering framework. An additional 53 meters were installed through the DisCo Financed framework.
Industry experts have expressed concern that the continued slow metering efforts could exacerbate billing disputes and increase customer dissatisfaction.
The NERC report also noted a decline in electricity subsidies, which dropped to ₦151.30 billion in 2023, a 17.7% decrease from the previous year. A Minimum Remittance Obligation (MRO) adjusted invoice totalling ₦858.03 billion was issued by the Nigerian Bulk Electricity Trading plc (NBET) and the Market Operator for energy costs and administrative services to DisCos. However, the DisCos remitted only ₦706.73 billion, resulting in a deficit of ₦151.30 billion for the year, with a gross remittance rate of 82.37%.
In line with the federal government’s policy on electricity subsidies, tariffs for customer Bands B to E will remain frozen at the rates established in December 2022. The government is expected to pay around ₦180.8 billion in subsidies, with various DisCos receiving allocations: ₦26.4 billion for Abuja, ₦23.76 billion for Ikeja, ₦22.21 billion for Ibadan, and additional amounts for other DisCos.
Furthermore, NERC has imposed ₦8.3 billion in fines on the country’s 11 DisCos for overcharging customers and has mandated that the DisCos compensate affected consumers. These developments were detailed in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) released by NERC in Abuja under the leadership of Sanusi Garba.