The Federal Government has announced its intention to deploy seven million smart electricity meters across the country through the Presidential Metering Initiative (PMI). This initiative aims to eliminate estimated billing and reduce revenue losses in Nigeria’s power sector.
Additionally, the Presidency highlighted that Nigeria’s proven gas reserves, totaling 209 trillion cubic feet, will serve as a vital asset for the nation’s energy transition and economic diversification.
Mrs. Olu Verheijen, Special Adviser to the President on Energy, made this announcement yesterday in Abuja during events marking the second anniversary of President Bola Tinubu’s administration.
She emphasized that the meter rollout is a crucial part of the government’s strategy to enhance the commercial viability of the electricity value chain, particularly in the gas-to-power sector.
“We are implementing several actions to enhance the commercial viability of the gas-to-power value chain,” she stated.
She explained that the government is working on policies and regulatory frameworks designed to create a cost-reflective electricity market and improve operational efficiency throughout the sector.
“We are crafting policies and frameworks that will enable us to transition to a system where we can charge for the actual cost of delivering electricity, while also driving efficiencies in determining that cost,” she added.
Verheijen also highlighted that the administration’s broader reforms in the power sector aim to address the longstanding debts owed to electricity generation companies (GenCos) and gas suppliers, which have negatively impacted sector liquidity.
“We intend to resolve the legacy debt using a combination of cash and promissory notes to ensure that both generation companies and gas suppliers receive their payments,” she explained, linking the debt accumulation to various challenges in the sector.
“Furthermore, we are focused on enhancing revenue assurance by ensuring that the majority of customers on the grid are metered. This will allow us to eliminate estimated billing and minimize collection losses, ensuring that customers who receive electricity are making payments,” she stated.
