HomeFeaturesN700bn Approved For Free Meter Distribution By FG

N700bn Approved For Free Meter Distribution By FG

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With an eye on reforming the nation’s power sector, the Federal Government has announced a N700 billion investment dedicated to distributing free electricity meters under its Presidential Metering Initiative. Officials say the move is part of broader efforts to ensure accountability and fairness in electricity billing while easing the financial burden on ordinary Nigerians.

To address the nation’s ongoing metering crisis—where nearly half of electricity consumers lack proper meters—a significant portion of the monthly federation revenue is now being deducted before distribution to the three tiers of government. This initiative aims to close the 50 percent metering gap, ensuring fairer billing practices across Nigeria.

Documents from the Federal Account Allocation Committee’s (FAAC) meetings, spanning April to August and reviewed by our correspondent, show the government has saved a total of N420 billion. The savings come from monthly deductions of N100 billion, underscoring efforts to bolster fiscal prudence amid mounting economic demands.

It’s worth noting that the Federal Government initially deducted N120 billion from April’s revenue as the first tranche of the Presidential Metering Initiative (PMI). This brings the total deductions from the federation account for the program to N420 billion so far, signaling its scale and financial commitment.

Earlier this year, in May, Adebayo Adelabu, the Minister of Power, revealed that the government had allocated N75 billion as seed funding to launch the Presidential Metering Initiative. Adding to this, the Nigerian Sovereign Investment Authority pledged to contribute at least N250 billion every year, signaling a sustained commitment to addressing the metering deficit.

Adelabu also disclosed that the initiative would leverage debt financing from diverse financial institutions to bolster the PMI’s resources.

Read also: Electricity Supply Resumes In Northern States, TCN Reports

The Managing Director of Abuja Distribution Electricity Distribution Company, Victor Ojelabi, recently said that the PMI would unlock about N1tn in revenue currently tied up in the Nigerian Electricity Supply Industry due to a large number of unmetered customers.

Under the initiative, the Nigerian Electricity Regulatory Commission announced the approval of N21bn for the 11 electricity Distribution Companies to provide meters for end-use customers at zero cost.

Providing an update on the issue in an interview with the press on Friday, the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji, affirmed that the programme was still on course with a target to deliver two million meters yearly.

Tunji revealed that the amount saved had reached N700bn, adding that procurement had started.

He said, “The Presidential Metering Initiative is still on course, two million meters every year, delivery of the first batch will start by the first quarter of next year. About N700bn provision has been made, and the money is ready.”

Tunji further revealed that the government would fulfil its promise to deliver 1.3 million out of the 3.2 million meters under the World Bank Distribution Sector Reform Programme initiative this month

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