The Federal Government has unveiled plans to deploy seven million smart meters under the Presidential Metering Initiative, as part of efforts to end estimated billing and curb revenue leakages in the power sector.

 

Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, made the disclosure in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja, marking the second anniversary of the current administration.

 

Verheijen explained that the smart meter rollout aims to address persistent issues in the power value chain by eliminating estimated billing for millions of on-grid customers who remain unmetered.

 

“We are implementing several interventions to enhance the commercial viability of the gas-to-power value chain,” she said.

“One of the key steps is deploying smart meters to improve transparency and efficiency in electricity consumption and billing.”

 

She noted that accurate metering would enable the government to reduce collection losses and ensure that electricity consumers are billed fairly and pay accordingly.

 

Clearing Legacy Debts and Improving Revenue Collection

 

Verheijen also revealed that the government is taking concrete steps to clear legacy debts in the power sector, which she attributed to underfunded electricity subsidies and poor revenue collection performance by distribution companies (Discos).

 

“We plan to settle these legacy debts through a combination of cash and promissory notes to ensure that generation companies and gas suppliers are paid,” she said.

 

 

 

To complement this financial intervention, the government is also focusing on boosting revenue assurance through widespread metering, ensuring that most on-grid customers are accurately billed and contribute to the sector’s financial sustainability.

 

Demanding Accountability and Performance

 

In return for resolving the sector’s debt challenges, Verheijen said the government will demand improved performance and increased capital investment from all stakeholders and investors across the electricity value chain.

 

She emphasized the administration’s commitment to strengthening the governance and operational capacity of distribution companies, which she described as the “cash engine” of the electricity sector.

 

“Through existing regulatory frameworks, we will ensure that the Discos have the financial and technical capabilities to deliver more reliable power to Nigerian homes and businesses,” she concluded.

 

 

 

The Presidential Metering Initiative is one of several strategies being pursued to reform Nigeria’s power sector, ensure cost-reflective tariffs, and enhance electricity access and reliability nationwide.