Nigeria's Electricity Regulatory Commission Announces Plans to Address Meter Shortage.
The Nigerian Electricity Regulatory Commission (NERC) has announced that the country will roll out four million prepaid electricity meters, which will be funded by the Central Bank of Nigeria. The announcement was made by Aisha Mahmud, NERC Consumer Affairs Commissioner, who stated that the shortage of meters is one of the Commission’s biggest problems. The meters will be distributed through the distribution companies to customers.
Data from the National Bureau of Statistics (NBS) shows that metered customers in Q3 2022 stood at 5.02 million, showing a 1.33% increase from the previous quarter. The total number of customers also increased by 1.20% to 10.94 million. However, the number of customers declined by 1.19% on a year-on-year basis.
The report also shows that the number of metered customers grew by 5.71% on a year-on-year basis, indicating a rise from the figure reported in Q3 2021, which was 4.75 million. The number of estimated customers also increased by 1.09% from 5.85 million in Q2 2022 to 5.91 million in Q3 2022.
The revenue collected by the distribution companies (DISCOs) in Q4 2022 was N232.32 billion ($505 million), which is higher than the revenue collected in Q3 2022 (N202.62 billion or $440.6m). On a year-on-year basis, revenue collected rose by 16.02% from N200.23 billion ($435m) in Q4 2021.
The electricity supply in Q4 2022 also increased by 11.68% to 5,611Gwh from 5,024Gwh in Q3 2022. However, on a year-on-year basis, electricity supply declined by 3.48% compared to Q4 2021.
NERC’s announcement to distribute four million prepaid electricity meters is a step towards improving access to electricity in Nigeria and addressing the issue of metering shortages in the country. The announcement by the Nigeria Electricity Regulatory Commission (NERC) that four million prepaid electricity meters will be distributed across Nigeria has been welcomed by many citizens. The shortage of meters in the country has been a long-standing issue, and the move to distribute more meters is seen as a step in the right direction.
Nigeria's Efforts to Improve Electricity Access with Prepaid Meter Distribution.
The Central Bank of Nigeria (CBN) will provide the funding for the meters, which will be made available to customers through distribution companies. The data released by Nigeria’s National Bureau of Statistics (NBS) shows that the number of metered customers has increased by 1.33% from Q2 2022, indicating that the number of customers with meters is growing.
However, on a year-on-year basis, the number of customers with meters declined by 5.71% from the figure reported in Q3 2021, which was 4.75 million. This indicates that there is still a long way to go to ensure that all customers have access to meters.
Speaking at a customers’ complaints meeting in Jos, Aisha Mahmud, NERC Consumer Affairs Commissioner, expressed her disappointment that basic things such as metering were still an issue in the country, despite electricity generation starting in Lagos as far back as 1826.
The Nigeria Electricity Report shows that total customer numbers in Q3 2022 stood at 10.94 million, showing a rise of 1.20% from Q2 2022. On a year-on-year basis, however, customer numbers in Q3 2022 declined by 1.19% from Q3 2021. The number of estimated customers also increased by 1.09% from 5.85 million in Q2 2022 to 5.91 million in Q3 2022.
Revenue generated by the DISCOs in Q4 2022 increased by 16.02% from N200.23 billion ($435m) in Q4 2021 to N232.32 billion ($505 million) in Q4 2022. Meanwhile, electricity supply in Q4 2022 increased by 11.68% from 5,024Gwh in Q3 2022 to 5,611Gwh, although on a year-on-year basis, electricity supply declined by 3.48% compared to Q4 2021.
In conclusion, the distribution of four million prepaid electricity meters in Nigeria is a significant development in the country's electricity sector. It is expected to improve the reliability of electricity supply, reduce estimated billing, and increase revenue collection for distribution companies. The success of the program will depend on the effective implementation and monitoring of the distribution process, as well as on addressing other challenges facing the sector.
