The Federal Government has installed 668,000 electricity meters across the country as part of the first phase of a $500 million World Bank-financed Distribution Sector Recovery Programme.
The current installation figure represents approximately 60% of the 1.033 million meters already delivered to the country under the scheme.
The initiative aims to reduce the heavy reliance on estimated billing, which has long been a source of conflict between electricity consumers and distribution companies.
Under the World Bank funded programme, the goal is to enhance the financial viability of the distribution companies, known as DisCos, by improving revenue collection and metering accuracy.
The deployment of these meters is critical to transitioning the Nigerian electricity supply industry toward a more transparent, prepaid-based system.
Currently, about 365,000 meters remain delivered but are yet to be installed on customer premises. This gap suggests operational bottlenecks in the final deployment phase despite the availability of hardware.
The $500 million investment is part of a broader strategy to stabilise the power sector, which has struggled with liquidity crises and systemic losses for over a decade.
Closing the Metering Gap to Stabilise DisCo Revenue
Estimated billing has historically distorted the economics of Nigeria’s power sector. Consumers frequently complain of overbilling, while DisCos struggle with high Aggregate Technical, Commercial and Collection (ATC&C) losses.
By installing prepaid meters, the Federal Government expects to eliminate these disputes and ensure that DisCos receive immediate payment for the energy they distribute.
Improved cash flow for the DisCos is intended to enable them to invest more heavily in their own network infrastructure, such as transformers and cabling, which would reduce technical losses.
The Distribution Sector Recovery Programme is designed to complement existing efforts by the Federal Ministry of Power and the Nigerian Electricity Regulatory Commission to professionalise the sector.
The metering gap remains one of the most significant hurdles to the full commercialisation of the industry. Without comprehensive metering, the sector cannot achieve the cost-reflective tariffs required for long-term sustainability.
Industry analysts suggest that the installation of these 668,000 meters will provide a measurable boost to the liquidity of the affected DisCos, although the pace of installation must accelerate to match delivery rates.
The programme also seeks to improve the data quality available to the regulator, allowing for more accurate planning of power distribution and demand forecasting.
The successful rollout of the first phase is expected to pave the way for subsequent funding rounds and expanded metering targets to cover more underserved areas.
The focus now shifts to the installation of the remaining 365,000 meters currently in storage and the evaluation of the programme’s impact on revenue recovery.
The government is expected to provide further updates on the installation timeline and the specific distribution of meters across the various DisCos in the coming weeks.
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