Abubakar Ibrahim, PhD A few days ago, the Nigeria’s Minister of Power, Chief Adebayo Adelabu directed electricity consumers in Nigeria not to pay for the installation of meters. He also warned that any Distribution Company (DisCo) that violates this direction will face serious sanctions. This announcement raised a lot of controversy, with some DisCos reportedly describing it as a mare political statement. However, my main concern is, who ultimately bear the consequences? I know you must be guessing, right. Don’t worry, we will get there. There is a proverb that says, when two elephant fight, the grass suffers. In this case, the “grass” is the Nigerian electricity consumer. To understand the situation properly, let us examine the core issue at the center of the disagreement – metering . The Metering Framework There are currently two major metering schemes in Nigeria. The first is the Meter Asset Provider (MAP), this was introduced by the Nigeria Electricity Regulation (NERC) in May 20...
By Abubakar Ibrahim, PhD Electricity Market Analyst The recent decision by the Enugu Electricity Regulatory Commission to lower Band A electricity tariff to ₦160/kWh from 209/KWh may have been well-intentioned, but it opens a complex debate about market stability, subsidy sustainability, and the future of Nigeria’s power sector. The implications is that, Mainpower a subsidiary of Enugu Electricity Distribution Company (EEDC) will struggle to meet its financial obligation to NBET/NISO, this is due to the shortfall in revenue from Band A customers. Moreso, failure to settle 100% of their bills may lead to sanctions from both NBET and NISO. However, some critics have argued that the current Band A tariff is driving electricity consumers off the grid with some seeking an alternative source of power, while others engage in electricity theft. It is also important to note, EERC unilateral move may encourage other states to act in the same way, while this seems pro people's decision, it ma...