…As FG begins new phase of metering rollout
…Initiative seen bridging gaps in revenue, service
When a banker with a young family moved from a flat he inherited from his late mother at Isolo to farther Ijedodo, a suburb of Lagos, his colleagues and friends thought he was abnormal.
On a visit, after several postponements, some of them realised that the stable electricity in the area, though far, was the attraction.
As well, it was also the attraction for the developers of many estates springing up in the area and owners of small-scale businesses, who profit from saving on energy cost.
On investigation, BusinessDay discovered that the stability is due to the fact that all landlords subscribed to the prepaid metering solution, which also enables the Ikeja Disco, which handles the area, to collect all revenues due to it at the end of the month.
Same case applies in many areas across the country where prepaid metering solutions are in place, as electricity consumers pay according to the unit of energy they consume, hence the Discos make efforts to offer stable supply to break even at the end of the month.
The above, according to observers, is a huge improvement over the estimated billing system, where Discos either overcharge consumers or lose huge amounts from unpaid bills.
Expressing his excitement, Olakunle Oganla, a resident of Ashamu Swamp Estate in Isheri, Lagos, who enjoys more stable electricity supply, noted that apart from being in the ‘Band A’ customer category, the magic is the prepaid meter, which the estate law made compulsory for all landlords.
“We have over 400 houses in the estate and all use prepaid meters. That guarantees revenue for the Ikeja Disco every month. If they fail to supply electricity, our unused units will remain. So, they need to supply stable light to make money. It is in their interest to do so and ours is to pay and enjoy electricity. It is working,” Oganla said.
Emeka Oforma, a resident along the Ikotun/Egbe area of Lagos, noted that the residents enjoy stable electricity supply due to the prepaid metering solutions, which has been in place a long time ago.
He also disclosed that some areas close to the axis do not enjoy as much stable supply as the axis because the majority of the houses are still on the estimated billing system.
In Abuja residents in most of the estates within the capital territory also enjoy more stable supply due to prepaid metering.
Nuhu Idrisu, a Wuse resident, noted that the Abuja Electricity Distribution Company is making good money from the thousands of estates in Abuja that subscribe to its prepaid metering solution, while still disconnecting customers lines in some areas, especially the suburbs where the estimated billing system is still in place.
“There is a stable electricity supply in my estate, though very expensive. But I enjoy the sanity in the area, especially as no Abuja Disco staff will climb ladders to disconnect power lines again because we all use prepaid,” he enthused.
In the same vein, Mike Ilechukwu, a Port Harcourt-based real estate developer, noted that residents in most well-built estates in the city only see Port Harcourt Disco technicians coming on time to replace spoilt components and restore supply as no supply means no money.
“The era of Discos sending their technicians to climb poles to disconnect consumers for unpaid bills is over because the estates all use prepaid meters and the Disco needs steady supply to make money from the consumers now. It is an exciting trend, which we hope will continue until all houses are hooked to prepaid meters,” Ilechukwu said.
As well, in Aba, Abia State, residents are enjoying Geometric Power intervention, especially those on prepaid metering as the estimated bills, according to many, are too high.
Ezemdi Uke, an entrepreneur and a resident of Eziama in Aba, disclosed that Geometric supply is not up to 24 hours, but good enough to sustain their manufacturing at lesser cost.
But while those who are under the prepaid metering solution are safer from rip-off and obnoxious bills, a concerned consumer decried that the government should partner the Discos to phase out estimated billing, which is still much across the country, with negative impacts.
“The government can make a law to phase out the estimated billing system. That will help serious Discos to provide prepaid meters to consumers because if they make money from estimated bills, they equally lose even more than that revenue from defaulters and other sharp practices aided by some of their greedy staff members,” Julie Asonye, a paint and chemical manufacturer, urged.
The right moves in the offing
Meanwhile, the government seems to be sincere in addressing the issue with the recent announcement of the expectation of about 3.2 million prepaid meters as part of efforts to bridge Nigeria’s electricity metering gap.
While the news is exciting, the public is worried over the execution, as many fear that such will end up in the hands of those who can afford it or acquire to resale them.
Adebayo Adelabu, minister of Power, assured that the government has placed high priority over the initiative, which is part of a broader strategy to ensure accurate billing, reduce revenue losses, and improve power sector efficiency.
According to the minister, the first consignment of 75,000 meters under the International Competitive Bid 1 (ICB1) will arrive in April 2025, followed by an additional 200,000 meters in May.
Far from the belief that Nigeria’s electricity sector is in crisis due to persistent metering shortages, the minister noted that significant progress has been made, with over 5.5 million customers; about 55 percent of the 10.1 million active electricity users, already metered as of December 2024.
Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, also observed that there has been steady progress in the pace of metering target, despite challenges with an average of 668,000 meters installed annually, and about 572,050 new meters deployed in 2024 alone.
Gbile Onasanya, a power sector analyst, commended the efforts, while hoping for significant improvements before the end of the year. But he is worried that the government is taking up the responsibilities of the Discos, who should, by law, provide enabling facilities to aid their business, especially prepaid meters.
“The government has sold out to private businesses, yet still partially funding their operations. I don’t understand the model. The Discos should rise up to the occasion and do the needful because there is so much to gain from the unmetered consumers out there.
“They have been complaining of losing revenue, the answer is prepaid metering to curb sharp practices of some of their staff members and if the National Grip doesn’t collapse frequently again,” Onasanya.
While commending the government for the prepaid meters, many Nigerians also hope they would be affordable and also given to those who need them without bureaucracy, though the high tariff means less units of power.
