Presidential Metering Initiative to Roll Out Seven Million Smart Meters Nationwide

In a bold move to reform Nigeria’s electricity sector, the Federal Government has announced the deployment of seven million smart meters under the Presidential Metering Initiative. The plan is aimed at eliminating estimated billing and plugging revenue leaks in the industry.

Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, shared these details in an interview with the News Agency of Nigeria in Abuja, marking the second anniversary of the current administration.

According to Verheijen, the smart meter rollout will significantly reduce collection losses for on-grid customers who have yet to be metered. She highlighted the initiative as a crucial step in enhancing the commercial viability of the gas-to-power value chain.

“There are several interventions underway to enhance the commercial viability of the gas-to-power value chain,” Verheijen said, adding that new policies and frameworks are being developed to allow for accurate electricity pricing and improved cost efficiency.

The adviser also revealed that the government is addressing its legacy debts in the sector, which have accumulated due to insufficient funding for electricity subsidies and underperformance by Discos in revenue collection. “We plan to clear the legacy debt with a combination of cash and promissory notes to ensure that generation companies and gas suppliers are paid,” she explained.

Verheijen stressed that metering most customers will improve revenue assurance and end the era of estimated billing. “With this, we can end estimated billing and reduce collection losses so that customers who receive electricity are paying customers,” she said.

As part of the reforms, stakeholders and investors will be required to enhance their operational performance and invest more capital to expand access to the national grid. The government is also focused on strengthening the governance of Discos, which play a pivotal role in the sector’s financial health.

“Through existing regulatory frameworks, the government will ensure that Discos have the financial and technical capacity to deliver more reliable power to Nigerian homes and businesses,” Verheijen concluded.