The Federal Government has allocated N700 billion to fund the distribution of free electricity meters as part of the Presidential Metering Initiative (PMI), aiming to address the country’s 50% metering gap. The funds, which are deducted from the monthly federation revenue before being distributed to the three tiers of government, are intended to ensure that millions of Nigerians receive electricity meters at no cost.
Since the initiative’s launch, N420 billion has already been deducted, with the first tranche of N120 billion drawn in April. The Minister of Power, Adebayo Adelabu, previously announced that an initial N75 billion would serve as seed capital, while the Nigerian Sovereign Investment Authority would contribute a minimum of N250 billion annually. Furthermore, the government plans to leverage additional funding through debt financing from various financial institutions.
Victor Ojelabi, the Managing Director of the Abuja Electricity Distribution Company, emphasized that the initiative could unlock up to N1 trillion in revenue currently tied up due to the large number of unmetered customers. In line with this, the Nigerian Electricity Regulatory Commission has approved N21 billion for the 11 electricity distribution companies to distribute meters free of charge to end users.
Bolaji Tunji, Special Adviser to the Minister of Power, confirmed that the PMI is progressing as planned, with a target of delivering two million meters annually. He stated that procurement for the meters has begun, and the first batch of meters is expected to be distributed by the first quarter of next year.
In addition to the PMI, Tunji also revealed that the government would fulfill its commitment to deliver 1.3 million out of the 3.2 million meters planned under the World Bank Distribution Sector Reform Programme, with these meters scheduled for delivery this month.
