World Bank, CBN fully finance six million meters – FG

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The World Bank and the Central Bank of Nigeria are fully providing funds for the estimated six million electricity meters needed to close the metering gap in the Nigerian power sector, the federal government said.

It was seen in Abuja on Friday that the two institutions are currently deploying funds to close the gap in order to stabilize the sector and resolve its liquidity problems.

The latest Nigerian Electricity Sector Overview and Progress Document obtained from the Federal Ministry of Energy showed that both partners were providing loans to sector operators for the purchase of meters.

The FMP also said in the document that 580,000 meters had been received by electric utilities in the first half of this year, adding that the installations were funded by apex bank and its global financial partner.

He further said that the meters were bought locally, adding that the development had led to the creation of jobs in the assembly and installation of meters across the country.

The government said: “Five hundred and eighty thousand meters were received by nightclubs from January to June 2021 as part of phase zero of the national mass counting program. A total of 425,000 meters have been installed.

“This exceeds the number installed over the 18-month period of the Meter Asset Provider (MAP) program.

“All meters are purchased locally, creating jobs in assembly and installation. The six million meter gap is fully funded by CBN and World Bank loans. ”

As part of CBN for the financing of the NMMP, the bank explained that the introduction of the service-based tariff in the Nigerian electricity supply industry which went into effect on September 1, 2020 had further put the emphasis on the need to close the counting gap in the NESI. .

He said closing this gap would improve the efficiency of revenue collection by distribution companies and thus make it easier to meet their obligations to other upstream market players.

In an analysis provided by the Nigeria Electricity Regulatory Commission in 2020, the metering gap in the NESI, based on customer count data over the period, was estimated to be over 10 million.

This included customers without meters as well as customers with outdated meters that needed to be replaced.

The CBN, along with officials from the Energy Ministry, said the national mass metering program had been approved by the president, Major General Muhammadu Buhari (retired), in an effort to fill this gap. metering in the electricity sector.

They said the move would ensure reduction in collection losses and increase financial flows to reach 100 percent of the nightclub market’s payout obligations, among other benefits.

Commenting on the metering program, Nigeria’s National Secretary Electricity Consumer Advocacy Network, Uket Obonga, praised CBN and its partner for making an effort to measure unmetered electricity users across the country.

He stressed, however, that it was not only up to the CBN or the nightclubs to say that they had installed a high number of meters, but the majority of consumers to attest to the fact that they had been measured.

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