The number of metered electricity consumers in Nigeria increased by 48.5% between 2019 and 2024, according to the National Bureau of Statistics (NBS). In 2019, there were 3,976,940 metered consumers, which rose to 5,907,644 by the first quarter of 2024. This growth reflects a significant improvement in the electricity sector, as it indicates a reduction in the reliance on estimated billing.
Yearly data from the NBS shows a steady rise in metered consumers: 4,138,043 in 2020, 4,773,217 in 2021, 5,125,009 in 2022, and 5,605,842 in 2023.
This represents annual growth rates of 4.1%, 15.4%, 7.4%, 9.4%, and 5.3%, respectively.
Despite this progress, the NBS also reported an 11.6% increase in the number of consumers on estimated billing during the same period. The number of such consumers rose from 5,758,026 in 2019 to 6,426,355 by the first quarter of 2024, with fluctuations over the years. For instance, the number peaked at 6,227,870 in 2020 and dipped to 5,741,365 in 2021.
The persistent reliance on estimated billing raises concerns about the accuracy and fairness of electricity charges. The Ibadan Electricity Distribution Company had the highest number of estimated billing customers, with 1,411,102, while the Eko Electricity Distribution Company had the lowest at 255,271. Other electricity distribution companies also had significant numbers of unmetered customers, contributing to the overall challenge.
The Minister of Power, Adebayo Adelabu, has committed to addressing this issue by the end of 2024. During a tour of power facilities in Ibadan, Oyo State, he emphasized the need for collaboration to close the metering gap, which affects around 50% of customers. Adelabu noted that President Bola Tinubu had launched a Presidential Metering Initiative aimed at bridging the gap within three to five years, with a target of installing two million meters annually.
Energy expert Isaac Samuel highlighted the negative impact of estimated billing in his paper, “The Challenges of Estimated Billing on Electricity Consumers in Nigeria: A Review.” He noted that this practice contributes to non-technical losses in the sector, leading to illegal activities and conflicts between consumers and distribution company employees. According to Samuel, about 80% of consumer grievances received by the Nigerian Electricity Regulatory Commission (NERC) are related to exorbitant bills, estimated billing, and poor metering infrastructure.
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- The Abuja Electricity Distribution Company (AEDC) reported progress in its metering scheme, covering over 70% of its customer base across the Federal Capital Territory, Kogi, Niger, and Nasarawa. AEDC’s Head of Marketing, Adefisayo Akinsanya, revealed that the company had metered over 840,000 customers and completed the installation of 100,475 meters under the National Mass Metering Programme. She emphasized the importance of meter deployment for revenue generation and customer satisfaction, noting that the company is finalizing a comprehensive metering plan to ensure all customers are metered.
Additionally, Akinsanya mentioned the ongoing Meter Asset Provider scheme, which allows customers to pay for meters and receive refunds through energy tokens over 10 years.
