The Federal Government, on Wednesday, disclosed the amount that it would amass following the hike in electricity tariff for Band A customers.
About 2.5 million meters, the Government said, he would be installed this year in a bid to bridge the metering gap across the country and ensure consumers pay the right amount for electricity.
Recall that the Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed that the move by government to withdraw electricity subsidy from 15 per cent of power consumers in Nigeria would save the government about N1.1 trillion annually.
Onanuga had said the President Bola Ahmed Tinubu-led administration was poised to allow the price hike in electricity given its N450bn budget for energy subsidies in 2024.
Adebayo Adelabu, the Minister of Power had also said subsequently and in due time, there will be removal of electricity subsidy for other Band users.
In a document on issues around the tariff hike, from the Power Ministry, Adelabu’s Media Aide, Bolaji Tunji, said the Ministry would save N1.5 trillion with the recent tariff adjustment.
“FG (Federal Government) to save N1.5tn with tariff adjustment. FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).
“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers,” it read.
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The Ministry stated that the target of the Federal Government was to meter about 2.5 million unmetered power users across the country annually.
“The Presidential Meter Initiative aims to install a minimum of 2 – 2.5 million meters yearly within the next five years,” it stated.
Information Nigeria recalls that a September 2023 report by Nigerian Electricity Regulatory Commission showed that out of the total 12,825,005 registered electricity customers in Nigeria, only 5,707,838 had meters, indicating that over 7.1 million registered customers were still subjected to the estimated billing system.
To close this gap, the Federal Government established the Presidential Metering Initiative, which was announced by the Minister of Power at a briefing in Abuja.
Adelabu had put the metering shortfall at about eight million, but stressed that the Federal Government was committed to eliminating estimated billing by the end of 2024 and close the gap within the space of three to five years, through the new initiative.
“Citizens are tired of estimated billing because it always leads to cheating between consumers, staff and company. Before the end of this year, we are looking at the possibility of ending estimated billing because we want transparency and objectivity in our billing system.
“We have up to eight million metering gap in Nigeria and what the initiative seeks to achieve is to close this gap within three to five years. This means that an average of two million meters are required on a yearly basis and achieving the target is compulsory for citizens to enjoy stable power supply,” the minister had stated at a briefing in Abuja.
