The Federal Government of Nigeria (FGN) have taken steps to reduce the effect of Service Reflective Tariff of electricity on citizens by rolling out prepaid meters to the public.
FGN approved the rolling out of Prepaid Meters under the National Mass Metering Programme. This programme is part of the FGN’s effort to further bridge the country’s metering gap and also cushion the effect of the Service Reflective Tariff on electricity consumers in Nigeria
The primary objective of the National Mass Metering Program is to increase the metering rate in the country and close the gap of unmetered customers. It is also expected that it will assist in reducing Collection losses, while at the same time increasing financial flows to achieve 100 percent market remittance obligation of the DisCos.
In line with this programme, Ikeja Electric Plc (IE) has announced on their website the commencement of the distribution of Prepared Meters to customers starting from 30th of October 2020.
IE stated their commitment to drive the roll out through a series of one-day metering initiative across different locations in its network. “These metering initiative is designed to ensure a seamless metering process that allows customers to register and be metered on the same day after following due process.”
Furthermore, IE explained that for the first phase of the programme will run till the end of the year, Ikeja Electric would be rolling out over 106,000 prepaid meters to customers across its six Business Units – Ikeja, Abule-Egba, Akowonjo, Oshodi, Ikorodu and Shomolu.
It was also noted that beneficiaries of this programme, which will cut across all locations in IE network, will not be required to pay upfront for the installation of meters. Rather, the modalities of cost recovery for the meters will be clearly defined and communicated to the beneficiaries.
Recall that on the 26th of August, 2020, Nigeria’s President Muhammadu Buhari approved the much-anticipated electricity tariff increase which was to be effective from September 1st, 2020, implying that most Nigerians would have to pay more for electricity.
Reacting to this, the Nigerian Labour Union threatened a nationwide strike which will lead to effects that would deteriorate the economy of the country. This resulted into urgent meetings and dialogues between The Federal Government and the Nigerian Labour Union.
After the meeting, the Government agreed to suspend the electricity tariff increase for a period of two weeks stating the Terms of Reference for the suspension of the electricity increase, which included that the committee members which were formed should examine and advise government on the issues that have hindered the deployment of six million meters across the country.