The eleven power distribution companies (DisCos) secured the total amount of N53.3 billion in credit facility from the Central Bank of Nigeria’s National Mass Metering Programme (NMMP).
The initiative which began in 2020 aimed at supplying 962, 832 electricity meters in the six geopolitical zones of the country. However, the report shows that 883,511 meters had been installed as of September 2023.
According to data from CBN, the initiative drove DisCos monthly revenue collection from N42 billion in 2020 to over N72 billion as at the end of 2022.
The power sector alone has gulped over N2.3 trillion of the intervention loans.
The report forms part of a series of Nairametrics exclusives detailing the disbursement of the N10.3 trillion intervention fund by the apex bank.
The power sector alone has gulped over N2.3 trillion of the intervention loans.
According to the report, the National Mass Metering Programme (NMMP) was initiated 2020 aimed to address the metering shortfall in Nigeria and put an end to the imprecise estimated billing practices for energy users.
The key stakeholders of the project are the Nigerian Electricity Supply Industry (NESI), the Nigerian Electricity Regulatory Commission (NERC), Discos, Meter Asset Providers (MAPs), the federal government under a private finance initiative (PFI) .
The programme was solely funded by the Central Bank of Nigeria (CBN).
While the status of the loans disbursed was labelled as performing, the report also noted that some of the major challenges of the programme included persistent commercial and collection losses as well as existing metering gap of over 7 million.
The report further recommended the need for support of local meter manufacturing companies with capacity for backward integration, and facilitating synergy across the power sector value chain players.
It indicated that there is a need for an intensified collaboration between NERC and the distribution companies.
The NMMP was meant to be a 3 phased facility for distribution companies to help financing the metering gap estimated at about 7 million.
The initial Phase Zero which gulped around N53.3 billion helped increase DisCos revenues collected from around N42 billion to N72 billion. However, the report did not state if the losses of the DisCos increased or the metering helped reduce it.
In addition to the increased collection, the CBN also stated that 4,691 jobs were created through the NMMP via engagement of meter installers and technicians.
The funding helped finance the procurement of 962, 832 electricity meters, of which 883,511 has been installed.
According to the report only N3.4 billion of the loan had been repaid as of September 2023 while an outstanding of N49.3 billion remain. In terms of the amount due but unpaid, the apex bank put this figure at N1.3 trillion.
Ibadan & Abuja DisCo’s received the most amount with N6.1 billion and N6 billion respectively. Ikeja, Enugu Disco and Kano Disco rounded up the top 5 with each collecting over N5 billion.
