Eight years after privatisation of the electricity sector, a total of 8.1 million electricity customers are yet to be metered.
This metering gap in the country has been linked to alleged high-level corruption, weak regulation, and the inability of the National Assembly to criminalise arbitrary billing of electricity consumers.
The Nigerian Electricity Regulatory Commission (NERC) disclosed that four million meters would be provided to consumers this year, the World Bank in a bid titled DREP-PPI, Credit No 9206-NG, and project identification number P172891, would provide a loan to kick-start the first phase of NMMP.
On its part, the Central Bank of Nigeria (CBN) froze 157 accounts belonging to about 10 metre-producing companies that allegedly played roles in short-changing Nigerians during the National Mass Metering Programme, which was introduced by the Federal Government. Now, the CBN appears to have been forced to withdraw the illegal freezing of the 157 account to douse tension over electricity bill increase.
In a letter dated April 17, 2023, the Meter Manufacturers and Assemblage Association of Nigeria (MMAAN), insisted that the plan by the World Bank would make it “impossible for local manufacturers to participate in the project, stressing that the move relates to extremely high average yearly turnover, cash flow, and security bid, all in US dollars.”
Meanwhile, the MMAAN in another letter dated March 24, 2023 asked the NERC to increase the price of prepaid meters from the current price per unit of a single-phase meter N58, 661.69 to N117, 323.38, while the current price per unit of a three-phase meter reviewed from the present price of N109, 684.36 to N219, 368.72 (excluding VAT).
Metre manufacturers, on their part, based the justification for the 100 per cent price increase on the scarcity of foreign exchange at the CBN window, naira devaluation, additional speculation for meters, increase in the price of diesel by 158 per cent, general inflation hovering at about 22 per cent, as well as the projected increase in the price of Premium Motor Spirit when the new administration resumes office.
The MMAAN equally wants existing contracts under the NMMP Phase One, coming through the CBN loan to be reviewed and re-awarded in the prices stated above.
In the Key Performance Indicators (KPIs) rooted in the Performance Agreement (PA) for the DisCos, the NERC, through the EPSRA Act of 2005, stated that power utility companies are charged with the responsibility of metering consumers. This is the basis for Section 32, Sub-section D, and Section 76, Sub-section 2 of the Act, which aims to calculate tariffs to achieve the legislation on liberalisation.
Indeed, when the question of who should provide metres resurfaced when NERC launched the Meter Asset Providers (MAPs) policy, the commission insisted that metering all electricity consumers remains the responsibility of DisCos even under the Meter Asset Provider (MAP) Regulations 2018.
Despite failing to meet up with the expected average deployment of 1, 640, 411 meters per annum, which would have bridged the gap in the last eight years, a fund meant for the government-funded NMMP scheme was allegedly misappropriated as metre suppliers, the DisCos and the powers that be in the sector reportedly forged figures amidst portfolio companies that could not deliver.
The CBN, last year, approached a Federal High Court in Lokoja, Kogi State for an order to freeze 157 accounts of Meter Asset Providers for allegedly diverting intervention funds under the NMMP between January 1, 2020, to March 15, 2022.
The companies identified by the CBN were Mojec Meter Asset Management Company Limited, Integrated Power Nigeria Limited, Holley Metering Limited, Protogy Global Services Limited, Turbo Energy Limited, G Unit Engineering Limited, Koby Global Engineering Services Limited, FLT Energy Systems Limited, Smart Meters Asset Provider Company Limited and Cresthill Engineering Limited.
It was learnt that while most heads of DisCos, especially those who have been ousted from the system are being trailed by the EFCC due to the metering saga, and other allegations, the Presidency’s team on infrastructure pulled the string that forced the CBN to abandon the allegations.
A Professor of Energy Economics, Wunmi Iledare said a quick way to metre consumers is to declare estimated billing illegal.
The Executive Director at Powerup Initiatives for Electricity Rights, Adetayo Adegbemle called for an immediate review of the NMMP to enable millions of Nigerians to get metres.
