Can Nigeria meet metering target?
Nigeria's Presidential Metering Initiative is still on course with the sum of 700 billion naira set aside from the federation account for the implementation of the distribution of free electricity meters under the Initiative. That's according to the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji who says two million meters are expected every year and the delivery of the first batch will start by the first quarter of next year. Meanwhile, Nigeria’s Senate has begun a probe into the activities of generation companies, the Transmission Company of Nigeria, and Distribution Companies, for inefficiencies since the privatization of the power sector. George Etomi, Founder of George Etomi and Partners joins CNBC Africa for more on these.
Mon, 09 Dec 2024 11:32:22 GMT
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AI Generated Summary
- Challenges in the privatization of the power sector led to the introduction of various metering plans, with the current MAP regime struggling due to pricing disagreements and economic factors affecting meter costs.
- The Federal Government's Presidential Metering Initiative aims to rapidly deploy meters to close the widening metering gap, enhance revenue assurance, and boost consumer confidence through modern metering standards.
- Despite gains in knowledge and sector understanding from the privatization of the power sector, challenges persist in gas supply, generation, transmission, and distribution, requiring a nuanced approach to address issues and attract new investments.
Nigeria's Presidential Metering Initiative is set to roll out with the allocation of 700 billion naira from the federation account to distribute free electricity meters. The initiative aims to provide two million meters annually, with the first batch expected by the first quarter of next year. Bolaji Tunji, the Special Adviser to the Minister of Power on Strategic Communications and Media, highlighted the importance of metering in building trust between consumers and utility companies. The privatization of the power sector faced challenges due to unrealistic tariffs, leading to the introduction of various metering plans such as CAPME and MAP. However, the current MAP regime is struggling due to pricing disagreements and economic factors affecting meter costs. The Federal Government's initiative is welcomed as it aims to rapidly deploy meters to close the widening metering gap and improve revenue assurance. The shift to modern metering standards is crucial for ensuring accurate billing and enhancing consumer confidence. Despite hurdles in the meter upgrade process, the extension of the deadline to January 2025 is a positive development. While there have been gains from the privatization of the power sector in terms of knowledge and sector understanding, challenges persist in gas supply, generation, transmission, and distribution. The Senate's probe into the power sector's inefficiencies calls for a nuanced approach to address issues and consolidate the gains of privatization. The sector requires patience and an enabling environment to attract new investments and improve service delivery.
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