THE World Bank has pledged to support Nigeria’s power sector reforms with 1.2 million meters to help the nation close its metering gap.
The support is expected to kick-start the Federal Government’s mass metering programme, which seeks to stop estimated billing.
With over seven million consumers yet to be metered, the Federal Government’s mass metering programme, designed to close the gap, had met a deadlock after controversies and allegations of corruption marred its first phase.
The number of metered electricity customers in Nigeria stood at 5.47 million in Q2 2023, indicating a growth of 10.4 per cent from the 4.96 million reported in Q2 2022.
On a quarter-on-quarter basis, the growth was only 3.1 per cent from 5.31 million recorded in the preceding quarter.
On October 5, 2023, bidders jostling to provide meters packed out a hall at the Transmission Company of Nigeria (TCN) in the Wuse Area of the Federal Capital Territory.
The Federal Government, at the event, emphasized that the initiative was committed to delivering reliable and cleaner electricity to Nigerian people and businesses.
Assistant General Manager in charge of World Bank Projects at TCN, Tukur Bamali, at the forum, said the reform would improve the performance of distribution companies (DisCos).
According to him, over $500 million is being provided by the World Bank for the project. $150 million will be expended on metering across eleven distribution companies, while $350 million will be given to DisCos directly to improve power supply.
The project would take about 18 months after the bidding process had ended and contracts were signed with suppliers, Bamali said, adding that it would be rounded off around the first quarter of 2025.
He said four million meters under phase one were on track.
Bamali affirmed that there was a need to consistently meter consumers to end to the estimated billing of end users.
The ICIR reports that the Nigerian government has been engaging with the Central Bank of Nigeria (CBN), which has been unable to provide the N200 billion required from the government for the project.
This organisation also reports that the World Bank has been supporting Nigeria’s power sector through the Power Sector Recovery Programme (PSRP), which has seen about $500 million lent to support the ailing sector.
Besides, a discussion on $1.5 billion loan is ongoing between the Bank and the Nigerian government.
According to a World Bank report, Nigeria has the world’s largest absolute electricity access deficit.
Lack of access to the electricity grid affects 45 per cent of the population (90 million people), making Nigeria the country with the largest number of people not connected to electricity. As such, Nigeria accounts for 12 per cent of the global access deficit.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.