FG Reports 2.8 Million Meter Installations, Targets Improved Electricity Market Efficiency
The Federal Government says it has provided electricity meters to more than 2.8 million customers through the Presidential Metering Initiative (PMI), as it intensifies efforts to reduce revenue losses, improve electricity market efficiency and address longstanding financial challenges in Nigeria's power sector.
The Minister of Power, Joseph Tegbe, disclosed this on Thursday, November 12, 2026, in Abuja, while delivering the opening address at the sixth Annual Conference of the Power Correspondents Association of Nigeria (PCAN). He was represented at the event by his Special Adviser on Administration and Projects, Martins Olajide.
/ You Might Also Like /
Tegbe said the metering programme formed part of several interventions introduced under President Bola Tinubu to address financial and infrastructure constraints affecting the electricity industry.
He also disclosed that the Federal Government had approved a ₦3.3 trillion intervention plan to settle verified legacy debts owed to electricity generation companies (GenCos), adding that the government had raised ₦1.23 trillion under the arrangement.
The initiatives seek to strengthen the financial position of electricity market participants, improve revenue collection and create conditions for more sustainable investment across the power sector.
Metering Programme Targets Revenue Losses in Electricity Market
The Presidential Metering Initiative aims to reduce commercial and collection losses associated with unmetered electricity consumption.
When customers lack functional meters, electricity distribution companies (DisCos) face difficulties accurately measuring consumption and collecting payments for electricity supplied. This can increase estimated billing disputes, weaken customer confidence and undermine revenue collection across the electricity market.
By expanding meter installations, the government hopes to improve consumption measurement, strengthen billing transparency and enable distribution companies to collect revenue more accurately.
The delivery of more than 2.8 million meters represents progress in the government's metering programme. However, the figure does not establish that Nigeria has closed its national metering gap, as the total number of unmetered electricity customers remains an important consideration in assessing the programme's coverage.
The Nigerian Electricity Regulatory Commission (NERC) has also approved ₦30 billion for the third tranche of the Meter Acquisition Fund (MAF), which supports the procurement and installation of meters for eligible electricity customers.
Under the arrangement, distribution companies will receive allocations based on their contributions to the fund, with installations covering their respective franchise areas. The programme also involves eligible local meter manufacturers, assemblers and Meter Asset Providers.
These interventions reflect the regulator's effort to accelerate meter deployment while strengthening accountability in electricity billing and revenue collection.
FG Approves ₦3.3 Trillion to Address Electricity Sector Debt
Beyond metering, the minister highlighted the government's financial intervention to address outstanding debts owed to electricity generation companies.
Tegbe said President Tinubu had approved a ₦3.3 trillion plan to settle verified legacy debts accumulated across the electricity market. The government has raised ₦1.23 trillion under the arrangement.
The intervention is intended to ease financial pressure on power generators, improve their ability to pay for natural gas supplies and support the maintenance of generating plants.
Outstanding debts have contributed to liquidity challenges across the electricity value chain, affecting the ability of market participants to meet operational obligations and sustain investment.
However, the extent to which the debt settlement programme improves electricity generation will depend on the effective disbursement of funds and the ability of generation companies to translate improved financial conditions into more reliable operations.
Government Expands Investment in Grid Infrastructure
The minister also highlighted investments in electricity infrastructure, including the construction of a new National Grid Control Centre in Osogbo, Osun State.
According to Tegbe, construction has commenced on the facility, which will replace the existing control centre built more than 60 years ago.
The new facility is expected to strengthen the monitoring and management of electricity transmission across the national grid.
The minister also disclosed that the Rural Electrification Agency (REA) had connected universities, hospitals and rural communities to solar power as part of efforts to expand electricity access.
These interventions address different aspects of Nigeria's electricity challenges, including transmission infrastructure, access to power in underserved communities and the operational efficiency of the national grid.
Tegbe said reliable and affordable electricity remained essential to the government's ambition of building a $1 trillion economy, arguing that industrial expansion and private sector investment depend heavily on dependable energy supply.
Government Accounts for More Than 95% of New Power Infrastructure Investment
Despite the government's interventions, the Managing Director of FGN Power Company Limited, Kenny Anuwe, raised concerns about the industry's dependence on public funding.
Speaking at the conference, Anuwe said the Federal Government had invested more than ₦10 trillion in the electricity sector since its privatisation in 2013.
He noted that government currently accounts for more than 95% of new infrastructure investment in the sector, a situation he said contradicts the original objective of privatisation.
According to Anuwe, the scale of public investment remains insufficient relative to the country's infrastructure requirements and economic ambitions.
He argued that the government should concentrate on providing essential infrastructure and creating favourable market conditions that allow private investors to participate more actively in electricity development.
Greater private sector investment, he said, would help bridge funding gaps and improve the industry's capacity to expand generation, transmission and distribution infrastructure.
His remarks highlight a continuing challenge for Nigeria's electricity reforms: the need to attract private capital while addressing the financial and operational weaknesses that limit investment returns.
Power Sector Faces Seasonal Generation and Infrastructure Challenges
Chairman of the Power Correspondents Association of Nigeria, Obas Esiedesa, also identified recurring electricity generation declines between November and March as a challenge requiring urgent attention.
He explained that reduced water inflows into hydroelectric power stations during the period could affect generation, while constraints in natural gas supplies could further limit electricity production from thermal power plants.
Esiedesa called for stronger coordination among government agencies, electricity regulators, generation companies and gas suppliers to ensure adequate fuel supplies for power plants.
He also identified inadequate transmission and distribution infrastructure, liquidity constraints, investment gaps and regulatory uncertainty as issues that continue to affect the electricity industry.
The concerns indicate that expanding meter coverage and settling legacy debts alone will not resolve the sector's structural challenges. Improvements across generation, transmission, distribution and market financing remain necessary to deliver more dependable electricity.
Private Investment Remains Critical to Electricity Sector Growth
The latest disclosures highlight the Federal Government's efforts to address Nigeria's electricity challenges through metering, debt settlement and infrastructure development.
However, the industry's continued reliance on public funding raises questions about the pace of private sector participation and the financial sustainability of existing reforms.
For businesses, manufacturers and property developers, improvements in electricity supply could reduce dependence on alternative energy sources and lower operating costs. More reliable power could also strengthen the investment appeal of commercial and industrial locations.
The government's ability to translate its financial interventions and infrastructure investments into measurable improvements in electricity supply will therefore remain central to the sector's recovery and its contribution to economic growth.
READ MORE
