Estimated Electricity Billing Is Fraudulent, Says Adelabu

The Minister of Power, Chief Adebayo Adelabu, has described the electricity estimated billing to unmetered consumers as fraudulent and opaque, saying it can never be acceptable in a sane country.

This is as the minister also announced that 1.3 million meters will be delivered to Nigerians between December and the second quarter of 2025.

The acquisition of meters according to the minister was part of the federal government’s initiative to address the seven million meter deficit and promote transparency in billing.

Adelabu disclosed this on Tuesday at the ongoing Nigeria Energy Summit held in Lagos, stating that the first phase of the meters will arrive in Nigeria in December, while the second phase will be received in the second quarter of next year.

“We have over 13 million customers, but just a little over 5 million are metered. Where is it done that over seven million customers will rely on estimated billing? It is fraudulent, it is not transparent, and it can never be acceptable in a sane country. But we cannot close this gap in one year.

“We are talking of over seven million meters to be imported, to be produced locally. The meter gap is a big elephant we must all join hands to fight and bring down.

“To address this, we launched the presidential metering initiative together with the Nigeria Governors Forum, and state governments are now part of this, supported by the World Bank Distribution Sector Reform Programme aimed to disburse 3.2 million meters, out of which I can confirm to you authoritatively that 1.3 million meters have been procured, contract signed and the payment made.

“We are expecting the first set of the meters to be delivered by December 2024, and the balance will be delivered by the second quarter of next year,” he said.

Adelabu assured that the addition of 1.3 million meters would aid billing efficiency and reduce the disagreements between the power distribution companies and their customers.

He expressed confidence that the power sector could generate N2 trillion in 2024 as against the N1 trillion in 2023, adding that the ongoing reforms, especially the Band A tariff review, will boost revenue.

The minister explained that if the amount spent on diesel and petrol for independent power generation is going into the power sector, there would be up to N5 trillion yearly revenue to provide infrastructure, replace dilapidating transformers, and fix broken lines.

He added that the metering initiative would reduce estimated billing, enhance transparency, and improve sector liquidity by ensuring that energy consumers are billed.

“And you will see the readiness of Nigerians to pay if you can display transparency and fairness in your billing. They are ready to pay. They know that the alternative sources are far more expensive, even apart from the societal environmental pollution of noise,” he said.

Adelabu also announced that the integrated national electricity policy will be ready in the next four weeks when it will be submitted to the federal executive council.

“As we look into the future, our focus remains on fully implementing the integrated national electricity policy,” the minister said.

He added that the nation does not have enough resources for what is envisaged for the sector, “but we must start building it from today. It covers everything, and when you add areas you want to put our attention to, please, let us do this within the next four weeks before we go to the Federal Executive Council. Once it is approved, it will be tough for us to make changes. It will be our guide to further transform the sector.

“So, with the 2023 Electricity Act, providing the ledger framework and the regulator setting the strategic direction, Nigeria is well-positioned to overcome the challenges that have historically plagued the electricity sector,” the minster assured.

He stated that the next steps will include ongoing investment in infrastructure upgrades and capacity building for local stakeholders, along with enhanced regulatory enforcement to ensure sustained positive outcomes.