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The Federal Government has set aside N700bn from the federation account for the implementation of the distribution of free electricity meters under the Presidential Metering Initiative, according to the Special Adviser to the Minister of Power on Strategic Communications and Media, Bolaji Tunji.

In a chat with The PUNCH on Friday, he noted that the PMI was on course with a target to deliver two million meters yearly.

He revealed that the amount reserved for the project had reached N700bn and procurement had started.

He said, “The Presidential Metering Initiative is still on course. Two million meters every year, delivery of the first batch will start by the first quarter of next year. About N700bn provision has been made, and the money is ready.”

The special adviser further revealed that the government would fulfil its promise to deliver 1.3 million electricity meters out of the 3.2 million meters under the World Bank Distribution Sector Reform Programme initiative this month.

“The DISREP programme will commence this month,” he noted.

However, an analysis of the Federal Account Allocation Committee meeting minutes obtained by our correspondent between April and August showed that the government had saved N420bn from a monthly deduction of N100bn.

The amount deducted from the monthly federation revenue before allocation to the three tiers of government was aimed at bridging the metering gap in the country, which currently stands at 50 per cent.

Recall that N120bn was deducted from April revenue as the first tranche for the PMI, bringing the amount deducted from the federation account for the initiative as of August to N420bn.

In May, the Minister of Power, Adebayo Adelabu, said that the government would provide an initial N75bn as seed capital while the Nigerian Sovereign Investment Authority pledged to inject N250bn annually for the initiative.

The minister also disclosed that the initiative would leverage debt financing from diverse financial institutions to bolster the PMI’s resources.

The Managing Director of Abuja Distribution Electricity Distribution Company, Mr Victor Ojelabi, recently said that the PMI would unlock about N1tn in revenue currently tied up in the Nigerian Electricity Supply Industry due to a large number of unmetered customers.

Under the initiative, the Nigerian Electricity Regulatory Commission announced the approval of N21bn for the 11 electricity Distribution Companies to provide meters for end-use customers at zero cost.

The Distribution Sector Recovery Programme is a comprehensive initiative aimed at addressing the challenges and inefficiencies within Nigeria’s electricity distribution sector.

Recently, the NERC acknowledged that the country’s metering gap remains substantial despite installing 3.03 million meters since privatising the power sector in 2013.

It said 6.15 million out of 13.33 million registered customers had been metered, bringing the metering rate to 46.14 per cent in 2024.