The Federal Government is set to deploy seven million smart electricity meters across Nigeria in a major push to eliminate estimated billing and plug revenue leakages in the power sector.
The initiative, led by the Presidential Metering Initiative, was disclosed by Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during an interview in Abuja to mark the administration’s second anniversary. She noted that the rollout is a critical step in enhancing transparency and efficiency in electricity billing while strengthening the gas-to-power value chain.
According to Verheijen, the metering drive will improve revenue assurance by ensuring that most electricity consumers are billed accurately for their actual usage. “This will help end estimated billing and reduce collection losses by guaranteeing that those who consume electricity are paying customers,” she stated.
In tandem with the metering initiative, the government also plans to resolve long-standing debts owed to power generation companies and gas suppliers. Verheijen said the debts would be settled through a combination of cash payments and promissory notes, helping to stabilize operations within the sector.
She attributed the debts to chronic underfunding of electricity subsidies and poor financial performance by distribution companies (Discos), who have struggled to collect revenues and deliver reliable service. The government will now require performance-based commitments from stakeholders in return for financial support.
To enforce accountability, stronger governance mechanisms are being developed for Discos, ensuring they possess both technical and financial capacity to serve consumers efficiently. Regulatory frameworks will also be used to track performance and encourage improvements in service delivery.
Verheijen emphasized that these reforms are part of a broader effort to make electricity delivery more commercially viable and sustainable, with smart metering at the core. “We are putting in place policies that allow electricity tariffs to reflect the actual cost of service, driving greater efficiency across the board,” she said.
Earlier this year, the Nigerian Electricity Regulatory Commission (NERC) fined eight Discos, including Abuja and Ikeja Electric, a total of ₦628 million for violating estimated billing regulations—underscoring the urgency of nationwide metering as a permanent solution to consumer exploitation.