The Federal Government may have made remarkable progress in Nigeria’s power sector, installing 184,507 new meters and issuing 50 licenses, permits and certificates in the third quarter of 2024.
In its Q3 2024 report released on Friday, the Nigerian Electricity Regulatory Commission highlighted a 256.01% increase in the number of meters compared to the 51,826 meters installed in Q2 2024.
This boost raised the net end-user metering rate in the Nigerian Electricity Supply Industry to 46.15%, up from 45.43% in the previous quarter, reflecting a 0.72 percentage point improvement.
The statement explained that the installations were primarily executed under the Meter Asset Provider framework, which accounted for 178,715 meters or 96.86% of the total.
Furthermore, 3,508 meters were placed using the Vendor Financed framework, with the DisCo Financed framework contributing 2,298 meters.
This improvement attempts to address concerns such as anticipated billing and increase client satisfaction in the power distribution network. To support the increasing metering effort, NERC granted 50 licenses, permits, and certificates to bolster the country’s power infrastructure.
These include, six new off-grid generation licences with a combined capacity of 30.06 MW, one renewal of an on-grid generation licence with a gross capacity of 39 MW, two new electricity trading licences, 11 captive generation permits with a total gross capacity of 63.36 MW, one registration certificate for a mini-grid, seven certifications for Meter Service Providers, 22 permits for Meter Asset Providers.
These licences are expected to attract investments, improve power supply, and expand access to renewable and off-grid energy solutions, particularly in rural areas.
The surge in meter installations and new licences represents a crucial step in reforming Nigeria’s power sector.
By focussing on metering through frameworks like MAP, the government is addressing the long-standing issue of estimated billing, which has irritated electricity users for years.
Furthermore, the issue of off-grid and mini-grid licenses demonstrates a growing emphasis on renewable energy and decentralised power systems, which are critical for increasing energy access to underserved areas.
“These advancements highlight the Federal Government’s commitment to reforming Nigeria’s power sector and creating an enabling environment for both consumers and investors,” NERC’s report stated.
With these initiatives gaining momentum, stakeholders are optimistic about continued progress in Q4 2024, paving the way for a more reliable, sustainable, and inclusive energy sector.
