The Federal Government has allocated ₦700 billion from the federation account for the Presidential Metering Initiative, according to the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji.
This initiative aims to distribute free electricity meters to consumers, addressing the metering gap, curbing estimated billing.
Tunji noted on Friday that the PMI is on track, aiming to deliver two million meters annually, according to The PUNCH.
He disclosed that the funds allocated for the project had reached ₦700 billion and that the procurement process had already commenced.
He said, “The Presidential Metering Initiative is still on course. Two million meters every year, delivery of the first batch will start by the first quarter of next year. About N700bn provision has been made, and the money is ready.”
Tunji further stated that the government would fulfill its commitment to deliver 1.3 million electricity meters this month as part of the 3.2 million meters under the World Bank Distribution Sector Reform Programme initiative.
“The DISREP programme will commence this month,” he noted.
Meanwhile, an analysis of the Federal Account Allocation Committee meeting minutes from April to August, revealed that the government had saved ₦420 billion through monthly deductions of ₦100 billion.
The deducted amount from the monthly federation revenue, prior to allocation to the three tiers of government, was intended to address the country’s metering gap, which currently stands at 50%.
In April, ₦120 billion was deducted from revenue as the first tranche the PMI, bringing the total deductions for the initiative to ₦420 billion by August.
In May, the Minister of Power, Adebayo Adelabu, announced that the government would provide an initial ₦75 billion as seed capital, while the Nigerian Sovereign Investment Authority pledged to contribute ₦250 billion annually to support the initiative.
Adelabu further revealed that the initiative would leverage debt financing from various financial institutions to enhance the resources available for the Presidential Metering Initiative.
Additionally, the Managing Director of Abuja Electricity Distribution Company, Mr. Victor Ojelabi, recently stated that the PMI could unlock approximately ₦1 trillion in revenue currently trapped in the Nigerian Electricity Supply Industry due to the high number of unmetered customers.
As part of the initiative, the Nigerian Electricity Regulatory Commission approved ₦21 billion for the 11 electricity distribution companies to supply meters to end-use customers at no cost.
