The distribution of free meters under the National Mass Metering Programme (NMMP) of the Federal Government experienced a significant decline of 58 percent in the first quarter of 2022. Data from the power market regulator revealed that only 29,282 customers were metered under the NMMP during this period, a stark contrast to the 69,321 customers metered in the fourth quarter of 2021. Power distribution companies reported this decrease in customer metering, attributing it to the winding down of NMMP Phase 1. Notably, Abuja, Enugu, Ikeja, Kano, Port Harcourt, and Yola Discos did not install any meters under the NMMP scheme in the first quarter of 2022.
In terms of meter installations, the figures for NMMP Phase 0 showed a decline from 158,889 in Q1 2021 to just 20,016 in Q1 2022. Although Phase Two of the free metering scheme was expected to resume in August with a target of distributing four million meters, it was delayed due to allegations of fraud against some meter providers. Ahmad Zakari, the Special Adviser to the President on Infrastructure, indicated that the next phase would commence in the second quarter of the year, eight months later than initially planned. He also mentioned that 20 new metering firms had been licensed for local meter production for this upcoming phase.
Regarding the overall metering landscape, the Nigeria Electricity Regulatory Commission (NERC) reported that it was actively collaborating with the Central Bank of Nigeria, the World Bank, and other stakeholders to expedite financial closure and fund disbursement for the NMMP. Out of the 85,510 meters installed for end users in Q1 2022, 29,282 (34 percent) were metered under the NMMP scheme, while the remaining 56,228 (66 percent) were metered through the Meter Asset Provider (MAP) intervention. On a Disco-by-Disco basis, Ibadan Disco recorded 30,404 installations in Q1 2022, marking a 122 percent increase compared to the previous quarter. Similarly, Ikeja Disco reported 18,169 installations, a significant rise from just 71 in Q4 2021.
In contrast, several Discos, including Jos, Benin, Abuja, Eko, and Kano, experienced substantial reductions in their metering activities, with declines ranging from 65 percent to 97 percent between Q4 2021 and Q1 2022. The NERC attributed the significant reductions in meter installations for Abuja, Benin, Kano, and Port Harcourt to their early utilization of meter allocations under the NMMP. Yola Disco also did not meter any customers in Q1 2022, mirroring its performance in the previous quarter. The NERC highlighted that the large metering gap for end-use customers remains a critical challenge, with only 4,740,114 out of 12,542,581 registered energy customers metered as of March 2022.
Overall, 85,510 meters were installed in Q1 2022, a slight increase from the 79,978 meters installed in Q4 2021. However, the quarterly meter installations have been decreasing due to the winding down of NMMP Phase 1, leading to a drop in the net metering rate from 45 percent in December 2021 to 38 percent in March 2022. NERC explained that this decline was partly due to the ongoing customer enumeration and updates to the Discos’ customer base information. Under the MAP intervention, a total of 56,228 meters were installed in Q1 2022, representing a 66 percent increase compared to the 10,285 installations recorded in Q4 2021. Ibadan Disco led the installations with 19,438 meters, accounting for 34 percent of the total under the MAP scheme, while Benin, Jos, and Yola Discos did not report any installations during this period. The NERC continues to engage relevant stakeholders to ensure consistent month-on-month increases in metering rates while implementing safeguards against overbilling of unmetered customers by setting maximum billing limits.
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