The Federal Government has announced plans to deploy seven million smart electricity meters across the country, to reform Nigeria’s power sector.
Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealed the plan during an interview with the News Agency of Nigeria (NAN) over the weekend. According to her, the rollout of smart meters is a cornerstone of the administration’s strategy to improve the commercial viability of the electricity value chain, particularly the gas-to-power segment.
“By ensuring most customers on the grid are metered, we can end estimated billing and reduce collection losses, making sure that those who receive electricity are paying customers,” Verheijen said.
The government is also addressing legacy debts owed to power generation companies and gas suppliers, which have hampered the sector’s growth. These debts accumulated due to past challenges in funding electricity subsidies and poor revenue collection by distribution companies (Discos).
“To clear these debts, we plan to use a combination of cash payments and promissory notes, ensuring that generation companies and gas suppliers receive due compensation,” Verheijen explained.
The administration is simultaneously working on policies to enable a cost-reflective electricity pricing system, which will promote efficiency and transparency in billing.
Recognizing the critical role of Discos in revenue collection and service delivery, the government intends to strengthen governance within these companies. Regulatory frameworks will be enhanced to ensure Discos have the technical and financial capacity to provide reliable power to homes and businesses across Nigeria.
Earlier this year, the Nigerian Electricity Regulatory Commission (NERC) fined eight distribution companies a total of N628 million for violating regulations on estimated billing. This enforcement underscores the government’s commitment to ending billing abuses and accelerating the deployment of prepaid meters under the National Mass Metering Programme (NMMP).
The deployment of seven million smart meters is expected to significantly improve billing accuracy, reduce revenue losses, and boost investor confidence in Nigeria’s power sector. This development aligns with the broader goals of President Tinubu’s administration to modernize the electricity infrastructure and support the country’s energy transition.
