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Energy/Power News

Metering Gap Driving Liquidity Crisis in Power Sector, Minister Says

Minister of Power, Joseph Tegbe has identified Nigeria’s metering gap as a major factor behind the persistent liquidity crisis in the country’s electricity sector, saying the challenge has weakened revenue collection, discouraged investment and affected service delivery.

Tegbe spoke at the launch of the Power Force Programme under the Presidential Metering Initiative (PMI), where the Federal Government commenced the training of 5,000 young Nigerians to support the nationwide installation of electricity meters.

According to the minister, the inability to accurately measure electricity consumption has made it difficult for operators in the Nigerian Electricity Supply Industry (NESI) to generate reliable revenue, resulting in declining investments and deteriorating infrastructure.

He said the metering deficit goes beyond a technical challenge, describing it as one of the key structural causes of the financial problems facing the power sector.

Tegbe said the Tinubu administration is implementing reforms to restore financial sustainability in the electricity market while ensuring consumers are billed only for the electricity they actually use.

He noted that wider deployment of smart meters would eliminate estimated billing, improve transparency, strengthen consumer confidence and provide electricity distribution companies with more predictable revenue to enhance power supply.

The minister also said the government remains committed to improving market discipline, boosting revenue collection and creating an environment that encourages private sector investment in the electricity industry.

On the Presidential Metering Initiative, Tegbe welcomed the decision by the Association of Meter Asset Providers of Nigeria (AMMON) to withdraw its court case, saying the move had removed a major obstacle to the accelerated rollout of electricity meters nationwide.

He commended AMMON, the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises (BPE), meter asset providers and other stakeholders for resolving the dispute through dialogue.

Speaking on the Power Force Programme, the minister said the shortage of qualified personnel has slowed efforts to close the country’s metering gap.

He explained that the 5,000 trainees would be equipped with the technical skills required to install smart meters across the country, adding that the programme would create employment opportunities, strengthen local capacity and support the expansion of Nigeria’s electricity infrastructure.

Mercy Omotosho

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