- DisCos bill over 60% of Nigerians without meters using estimates, driving mistrust, poor service, and revenue losses.
- The Federal Government launched the Presidential Metering Initiative in 2024 to install over 10 million meters, end estimated billing, increase revenue, and rebuild public trust.
You are not alone if you’ve ever paid an electricity bill for electricity you didn’t use or receive. According to the Nigerian Electricity Regulatory Commission (NERC), over 60% of Nigeria’s electricity consumers still don’t have meters. More than 10 million homes and businesses are being charged based on rough estimates or what many call “crazy billing.”
In March 2024, the Federal government unveiled the Presidential Metering Initiative (PMI), a bold and overdue intervention to end the injustice of estimated billing and accelerate energy access in Nigeria. The goal is to deploy over 10 million meters nationwide, eliminate arbitrary billing, restore public trust in the power sector, and empower consumers through accurate, transparent, and fair electricity pricing.
Estimated billing has fueled public outrage for years, with consumers accusing Distribution Companies (DisCos) of fraud and DisCos struggling with revenue shortfalls from unpaid bills and energy theft. This cycle of mistrust leaves the power sector stuck with low revenue, low investment, and poor service.
What Makes the PMI Different?
Previous efforts, like the Meter Asset Provider (MAP) Scheme and the National Mass Metering Programme (NMMP), promised meters but failed to close the gap. So, what makes the Presidential Metering Initiative any different?
For one, the presidency coordinates the PMI directly in partnership with NERC and the Nigerian Electricity Management Services Agency (NEMSA). The Federal Government is leading from the top, coordinating local meter manufacturers, setting national targets, and incentivising DisCos to prioritise metering as infrastructure. It also places a strong emphasis on:
- Local meter manufacturing to cut import costs and support jobs.
- Prepaid and smart metering to give consumers real-time control.
- Data-driven deployment, targeting areas most affected by billing fraud.
- State-level integration under the new Electricity Act, empowering subnational governments to get involved.
Why Metering Matters: Beyond the Numbers
Meters are more than technical devices; they are enablers of rights, protection, and responsible usage. Here’s why:
- Fair Billing and Cost Control: With prepaid or smart meters, customers pay only for what they use. This ensures equitable billing, especially for low-income households receiving the highest estimated bills despite using minimal electricity.
- Increased Accountability: Accurate billing tells customers exactly what they’re paying for. DISCOs, in turn, can track usage, reduce energy theft, and improve collection efficiency. Transparency benefits both sides.
- Revenue Recovery for Utilities: One primary reason for the DisCos’ liquidity crisis is poor collection from unmetered consumers. With prepaid and smart meters, payment is guaranteed upfront, improving cash flow and enabling reinvestment.
- Better Load Management: Real-time data from smart meters can help utilities and regulators track demand patterns, forecast loads, and invest in targeted upgrades. This is especially critical as Nigeria begins to decentralise electricity governance under the 2023 Electricity Act.
- Essential for Off-Grid Electrification: Prepaid metering is the backbone of rural solar mini-grids and independent power projects. Without it, pay-as-you-go energy models can’t function, limiting options for rural electrification.
The Presidential Metering Initiative is more than a policy. It is a chance to redefine the relationship between Nigerian citizens and their electricity system. It is about restoring fairness in billing, creating economic opportunities, and laying the groundwork for an inclusive energy future.
However, the initiative must be treated as a procurement exercise and a people-centred reform to succeed. Nigeria cannot electrify its future while billing its citizens in the dark. With the right political will, private sector collaboration, and community engagement, the PMI could be the long-awaited turning point in Nigeria’s power sector journey.