The number of metered electricity consumers in Nigeria increased by 48.5 per cent between 2019 and 2024, the National Bureau of Statistics has said.
An analysis of data from the NBS, an agency of the Federal Government, showed that in 2019, the number of metered consumers nationwide was 3,976,940.
This increased to 5,907,644 in the first quarter of 2024, representing a 48.5 per cent growth over the five years.
The bureau said metered power users in Nigeria increased from 3,976,940 in 2019 to 4,138,043 in 2020; 4,773,217 in 2021; 5,125,009 in 2022; 5,605,842 in 2023; and reached 5,907,644 in the first quarter of 2024.
This represents 4.1, 15.4, 7.4, 9.4, and 5.3 per cent growths respectively.
Experts note that this growth in metered consumers is a positive development for the electricity sector, as it indicates a reduction in the number of consumers on estimated billing.
The bureau however stated that estimated electricity billing increased by 11.6 per cent during the review period.
It said the number of consumers on estimated billing rose from 5,758,026 in 2019 to 6,426,355 in the first quarter of 2024.
This was despite fluctuations in the intervening years, including a peak of 6,227,870 in 2020 and a low of 5,741,365 in 2021.
The increase in estimated billing raises concerns about the accuracy of electricity billing and the need for more metered connections to ensure fair and transparent charging.
Data from the bureau showed that Ibadan Electricity Distribution Company had the highest number of estimated customers at 1,411,102, and Eko Electricity Distribution Company had the lowest at 255,271 during the five years.
Power users on the estimated billing system under the Abuja Electricity Distribution Company were put at 564,727; Benin Electricity Distribution Company, 688,081; Enugu Electricity Distribution Company, 765,662; and Ikeja Electricity Distribution Company, 219,632.
For Jos Electricity Distribution Company, the unmetered customers were 495,449; Kaduna Electricity Distribution Company, 639,395; Kano Electricity Distribution Company, 465,048; Port Harcourt Electricity Distribution Company, 231,384; and Yola Electricity Distribution Company, 690,604.
Early this year, the Minister of Power, Adebayo Adelabu, pledged to considerably tackle estimated billing in Nigeria’s power sector before the end of the year.
During a tour of power facilities in Ibadan, Oyo State, he emphasised collaboration with stakeholders to address the sector’s challenges, including a significant metering gap, where around 50 per cent of customers remain unmetered.
He said, “Citizens are tired of estimated billing because estimated billing always leads to cheating between consumers, staff, and company.
“Before the end of this year, we are looking at the possibility of ending estimated billing because we want transparency and objectivity in our billing system.”
He noted that President Bola Tinubu had established a Presidential Metering Initiative to harmonise all metering acquisitions across the country.
Adelabu said, “We have up to eight million meters gap in Nigeria and what the initiative seeks to achieve is to close this gap within three to five years. This means that an average of two million meters is required every year and achieving the target is compulsory for citizens to enjoy a stable power supply.’’
It is about four months to the end of 2024 and Nigerians eagerly await the fulfilment of this promise.
A publication by energy expert, Isaac Samuel, shed light on the challenges faced by electricity users in Nigeria due to estimated billing.
In his research paper, titled, “The Challenges of Estimated Billing on Electricity Consumers in Nigeria: A Review,” Samuel said estimated billing is a significant contributor to non-technical losses in the sector.
“Estimated billing is a major contributor to non-technical losses as customers have resulted in illegal and corrupt practices to get out of paying these bills they considered exorbitant,” he said.
This, he said, has led to frequent clashes between the employees of power distribution companies and customers.
Samuel attributed the exorbitant bills to Discos’ attempts to recover losses due to a lack of transparency and accountability.
“These exorbitant bills have been linked to Discos trying to recover or improve their profits due to loss of revenues,” he wrote.
The expert cited data from the Nigerian Electricity Regulatory Commission, stating that “about 80 per cent of consumer grievances received by NERC is related to exorbitant bills, estimated billing, and poor metering infrastructure.”
This came as the AEDC announced progress in its metering scheme, covering over 70 per cent of its customer base across four states including the Federal Capital Territory, Kogi, Niger, and Nasarawa.
The Head of Marketing at AEDC, Adefisayo Akinsanya, said, “AEDC’s metering distribution covers all customers within our franchise areas. We have metered over 840,000 customers, representing about 70 per cent of our total customer base.”
Akinsanya highlighted the company’s recent completion of the National Mass Metering Programme, which saw the installation of 100,475 meters for customers.
She said a comprehensive metering plan is being finalised to ensure all customers are properly metered.
Akinsanya emphasised the importance of meter deployment, stating, “Meter deployment is capital-intensive, and meters are critical to our revenue generation.”
She assured consumers that the company was working to balance customer satisfaction with revenue protection by leveraging advanced metering technologies.
Akinsanya further mentioned the ongoing Meter Asset Provider scheme, which allows customers to pay for meters and receive refunds through energy tokens over 10 years.
