A total sum of $900 million (about N324 billion) has been projected to fund pre-paid electricity meter requirement in Nigeria.
This was disclosed by Mojec Meter Assets Management Company, one of the major electricity meter producers in Nigeria, which also hinted that the supply gap is still increasing.
Last year, the Nigerian Electricity Regulatory Commission, NERC, introduced the Meter Assets Providers, MAP scheme with the aim of fast-tracking the rollout of meters through the engagement of third-party investors, called meter asset providers, MAPs, for the financing, procurement, supply, installation and maintenance of electricity meters.
MAP Programs Executive of the company, Michael Onurah, speaking at the Future Energy Nigeria, FEN, Conference and Expo held in Lagos yesterday, stated that the electricity meter companies are working to close the metering gap in the country, adding, however, that “the process requires huge amount of money to a tune of between $600 million and $900 million to get Nigerians metered under this program.”
He explained: “With the metering gap of 4.7 million, multiply by the average price of a meter both a single and three phase (N36,991.50 and N67,055.85), we arrive at the figure given.
“However, the metering gap is something that does increase and not static which was also considered when arriving at the $900 million.”
He called for an enabling environment to drive the metering scheme as well as meet the customer’s complaints of crazy bills. On the challenges facing the metering programe, he stated:
“There is also the challenge of an approved meter service charge rate of 21 percent not market driven, customers making payment without recourse to the MAP process, 10 days installation turnaround time.”