The Minister of Power, Adebayo Adelabu, recently announced the successful recovery of N12.7 billion from a local supplier who had received payment from the federal government 21 years ago. This revelation was made by Adelabu during a conference held in Lagos.
The funds, amounting to N32 billion ($200 million), were disbursed to the local supplier in 2003 for the procurement of three million meters. Shockingly, no meters had been provided by the supplier despite the hefty payment received. Previous administrations had attempted to retrieve the funds without success until Adelabu’s ministry intervened and recouped a significant portion of the disbursed amount.
Adelabu highlighted the importance of this recovery, pointing out that the Nigerian metering gap was less than 4 million at the time of the initial payment. The recovered funds could have provided meters for approximately 3 million households, addressing a critical need in the country’s power sector.
Furthermore, Adelabu outlined his mandate from the President to procure 10 million meters within the next five years to close the existing metering gap in Nigeria. The Presidential Metering Initiative (PIM) has been established for this purpose, with plans to procure two million meters this year alone.
Despite ongoing efforts to bridge the metering gap, challenges persist in Nigeria’s power sector, including inadequate investment, energy theft, and bureaucratic hurdles. Various initiatives, such as the World Bank’s approved $500 million metering program, aim to improve the situation by providing meters for consumers and enhancing electricity supply.
However, controversies have arisen, including allegations from the Manufacturers’ Association of Nigeria (MAN) regarding the exclusion of local meter manufacturers in favor of foreign importers. Achieving proper metering of customers is crucial for establishing fair billing practices and ensuring transparency in the power sector, ultimately benefiting consumers and the electricity distribution system.
