The Minister of Power, Adebayo Adelabu, has announced that Nigerian electricity consumers who receive prepaid meters at no upfront cost will have a repayment period of up to 10 years.
This clarification contradicts earlier claims that customers who pay for their meters would be reimbursed through energy credits.
Speaking in Ibadan, the minister acknowledged the rising cost of meters and highlighted funding challenges as a significant barrier to widespread meter distribution.
To address this, the Federal Government plans to fund meter procurement through various initiatives, with customers repaying the cost over a decade.
Adelabu explained, “We can get funding for this meter and allow the customers to pay over time. When the government starts procuring meters, we’ll give it to the customers, and we’ll deduct the money over 10 years. In which case, you will not even feel it at all.”
He further elaborated that deductions would be minimal, such as N100 from a N5,000 energy credit purchase, to gradually repay the cost of the meter.
This approach aims to make meter acquisition more accessible and reduce the current metering gap.
The minister also revealed that the Federal Government and state governments have collectively raised N100 billion for the procurement of prepaid meters. This effort is part of the Presidential Meter Initiative (PMI), which aims to install a minimum of 2 million meters annually over the next five years.
Additionally, the World Bank has committed to supporting Nigeria with the procurement of nearly two million meters over the next two years as part of the Distribution Sector Recovery Programme (DISREP).
Of the $500 million allocated to DISREP, $200 million will be directed towards meter procurement, with the initiative already at an advanced stage.
