The Minister of Power, Adebayo Adelabu, has clarified that electricity consumers who receive prepaid meters at no upfront cost will have up to 10 years to repay the cost through gradual deductions from their energy purchases.
This statement comes amidst widespread confusion over whether customers who pay for meters would be refunded through energy credits.
Addressing the issue in Ibadan, Adelabu acknowledged that the rising cost of meters has been a significant challenge.
He explained that the Federal Government plans to fund the procurement of these meters through various initiatives, with customers gradually repaying the cost over time.
“We can secure funding for these meters and allow customers to pay back gradually,” Adelabu stated.
“Once the government begins procuring meters, they will be provided to customers, and the cost will be deducted over a 10-year period, so the financial impact will be minimal.”
To illustrate, he explained that a customer purchasing N5,000 worth of electricity credit might see just N100 deducted towards repaying the cost of the meter.
“This way, we can reduce the meter gap without imposing a heavy financial burden on consumers,” he added.
Adelabu also revealed that the Federal Government and state governments have collectively raised N100 billion to fund the procurement of prepaid meters. He noted that President Bola Tinubu has established a Presidential Meter Initiative and a Presidential Metering Council, which Adelabu chairs, to oversee the procurement and installation of a minimum of 2 million meters annually over the next five years.
“In the PMI, we have made significant progress in sourcing funds, and we have already secured around N100 billion for meter procurement,” Adelabu said.
He further disclosed that the World Bank has pledged to support Nigeria’s efforts by funding the procurement of nearly 2 million meters over the next two years through the Distribution Sector Recovery Programme.
Of the $500 million allocated to DISREP, $200 million will be dedicated to meter procurement, with the process now in its advanced stages.
