VI Energy Politics & Supply SecuritySub-Saharan Africa
ThisDay says Nigeria's power distributors profit from the metering gap
- Institution
- ThisDay (editorial)
- Author
- Institutional publication
- Country · language
- Nigeria · English
- Affiliation
- Independent newspaper
Summary
In its 26 October editorial, the Nigerian daily ThisDay writes that electricity distribution companies (DisCos) are issuing estimated bills to customers without prepaid meters. Those bills have risen by as much as 100% in a short period. According to the paper, the increases come even though power supply has not improved. Data from the regulator NERC for the end of August show the metering rate rising only from 62.4% to 63.1% in a month. The number of customers receiving new meters fell from 159,980 in July to 141,746 in August.
The editorial says Eko, Ikeja and Abuja distributors have metered more than 80% of their active customers, while Jos, Yola, Kaduna and Kano remain below 43%. The paper argues that the companies are reluctant to install meters because estimated billing earns them more. It writes that the privatisation of distribution and generation in November 2013 failed to deliver the promised reduction in outages. Consumers, it says, now pay more for less electricity. ThisDay asks NERC to enforce its rules on estimated billing and the companies to meet their obligations under the Meter Asset Provider regulations.
Blind spot
The editorial only mentions the companies' collection problem, particularly low collection rates in the north, and gives no figures. It does not state the total number of unmetered customers or the cost of closing the gap. The effect of tariff levels and subsidy arrears on the distributors' capacity to invest is not discussed; the problem is read purely as corporate behaviour.
Talay assessment
Bottom line
A metering rate that rose by only 0.7 points in a month shows that Nigeria's power reform has stalled at the distribution end. Estimated billing gives the companies near-term revenue, but it erodes consumer trust and collections. NERC issuing fresh warnings is more likely than any acceleration in meter rollout.
Likely effects
- Electricity collectionsNegative1–6 months
Backlash against estimated bills hardens payment resistance, especially in northern areas where metering is below 43%.
- Power sector investmentNegative6 months+
Revenue uncertainty in distribution keeps receivables risk high for investors in generation and transmission.
- Household budgetsNegativeWeeks
Bill increases of up to 100% without better supply, on top of fuel costs, push up household energy spending.
Possibilities, ranked
- 1Warnings, but slow change60%
NERC issues new directives while the metering rate keeps rising by less than 1 point a month.
Watch: NERC's monthly metering data pages for September and October
- 2Sanctions speed things up25%
NERC imposes fines or orders refunds, and meter rollout accelerates.
Watch: A NERC fine or refund order against a distributor over estimated billing
- 3Tariff clash15%
The companies seek to pass metering costs into tariffs, triggering a clash with the regulator.
Watch: Tariff review applications from distribution companies
Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.
Original publication: thisdaylive.com · 26 October 2026
This page summarises the institution's view and does not reflect the view of Talay Insight. No direct quotation is used.