In a bid to bridge the metering gap, the federal government has earmarked a total of N700 billion from the monthly federation revenue to provide electricity meters free of charge to the masses.
This new development stems from the Presidential Metering Initiative (PMI), which leverages debt financing from various financial institutions.
It was gathered that the federal government secured support for the initiative and allocated savings to ensure free meters are accessible to citizens, despite the prevailing economic challenges.
According to an analysis of minutes from the Federal Account Allocation Committee (FAAC) meetings, the government has saved N420 billion between April and August through a monthly deduction of N100 billion.
Similarly, N120 billion was deducted from April’s revenue as the first tranche for the PMI, amounting to a total of N420 billion deducted from the federation account so far.
In May, the Minister of Power, Adebayo Adelabu, stated that the Nigerian Sovereign Investment Authority (NSIA) supported the initiative with a minimum of N250 billion annually throughout its duration, in addition to an initial capital injection of N75 billion from the government.
Meanwhile, the Managing Director of Abuja Electricity Distribution Company (AEDC), Victor Ojelabi, recently disclosed that the PMI would unlock approximately N1 trillion in revenue currently tied up in the Nigerian Electricity Supply Industry due to a significant number of unmetered customers.
Speaking about the progress of the initiative during an interview with Saturday PUNCH on Friday, the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji, affirmed that the programme remains on track, with a target to deliver two million meters annually, addressing the widespread lack of household meters.
He said, “The Presidential Metering Initiative is still on course. Two million meters will be delivered every year, with the first batch starting by the first quarter of next year. About N700 billion has been earmarked, and the money is ready.”
Tunji further revealed that the government is set to fulfil its commitment to deliver 1.3 million meters this month under the World Bank Distribution Sector Reform Programme initiative, which targets a total of 3.2 million meters.
