Stakeholders Fault FG’s N700bn Metering Initiative, Demand Probe Of Previous Programmes

…Meters Should Be Locally Assembled, Not Imported- Energy Experts

Stakeholders in the country’s power sector have raised concerns over the Federal Government’s new N700bn metering initiative and questioned the transparency and effectiveness of previous metering programmes.

The Federal Ministry of Power recently announced the launch of the Presidential Metering Initiative (PMI), which aims to deploy two million meters annually for five years, funded through a ₦700bn allocation secured from the Federation Account Allocation Committee (FAAC).

However, industry experts are raising serious concerns over the lack of accountability surrounding earlier schemes, particularly the Meter Asset Provider (MAP) Scheme of 2018 and the National Mass Metering Programme (NMMP) introduced in 2020.

Speaking exclusively to THE WHISTLER in Abuja, the National President of the Association for Public Policy Analysis (APPA), Mr. Princewill Okorie, demanded a full investigation into the NMMP, questioning the disbursement and utilisation of its N200bn budget.

According to him, while the Central Bank of Nigeria was said to have disbursed N54bn of the fund to Distribution Companies (Discos), only N7bn had been repaid as of last year.

He also raised concerns over the lack of transparency in the procurement process, the pricing of meters, and the actual impact of the programme on reducing technical and commercial losses in the power sector.

Okorie said: “The N200bn announced in 2020 for mass metering, where is it? Can the Minister of Power address Nigerians on how that money was spent and how many meters were procured?

“So, we need to investigate the one that was brought before. I call for a commission of inquiry into how the N200bn or so was utilised.

“Who is monitoring the utilisation of these funds? What is the procurement process? Where is civil society in all of this?”

Okorie further questioned the rationale behind continuous launch of new initiatives without publishing comprehensive evaluations of previous ones.

“They say N200bn was brought up by the CBN as a loan to the DisCos. Now, what they gave to the DisCos was N54bn out of the N200bn.
“So, where is the rest of the money? And from the N54bn, how many meters have they provided? We need to know.

“So, this N700bn, how will it be handled? But it is still a presidential metering initiative. Where is the civil society, people monitoring it?

“What is the procedure for purchase, the procurement process, and who is monitoring the procurement process to ensure it is transparent?

“The meter that they brought is it free? How many consumers got the ones that were brought in 2020?

“Now, the Meter Asset Provider of 2018, how many customers have been paid back? Can the minister tell us the data on the number of customers that have bought meters under the Meter Asset Provider, and the number of persons that have been paid back through energy credits in the first place?

Similarly, the President of the Nigeria Consumer Protection Network, Kunle Kola-Olubiyo, welcomed the new initiative but cautioned against relying on imported meters.

He echoed his support for the local manufacturers by assembling the meters within Nigeria.

“If we’re ordering millions of meters, then manufacturers should be encouraged to set up local assembly plants. This will not only reduce costs but also create jobs for Nigerians,” Olubiyo said.

He noted that meter procurement must be accompanied by fair and transparent pricing and warned against passing the financial burden to consumers, especially those in the premium Band A category.

Olubiyo, who disclosed involvement in negotiations with meter producers, stated that most companies are willing to relocate production equipment to Nigeria if given large contracts.

He said, “The issue of metering, as you all are aware, is of grave concern, and so we are on the same page with the federal government in making sure that we close a closure of metering gap.

“But as good as that may be, you know, we should not just emphasise importation because these are meters that are not coming for free.?

“So, our emphasis here is that there is nothing bad in closing the metering gap, but we must make sure that they are in country, put together in country. The government is on the right track.

“And payment for the debt, because most times they are usually thrown at band A. They are usually thrown at band A customers. So, we should equally work out the modalities and make sure that at the end of the day, we have a fair deal in whatever government is doing, such that the end users will not be suffocated.

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Stakeholders Fault FG’s N700bn Metering Initiative, Demand Probe Of Previous Programmes is first published on The Whistler Newspaper