NERC: Why Power Sector Metering Programmes Fail

The Nigerian Electricity Regulatory Commission (NERC) has listed project management failure and non-adherence to the terms of contracts as some of the reasons why past metering programmes in the country failed.

Speaking during a virtual discussion organised by, “The Power Hub,” General Manager, Finance and Management Services of the regulatory commission, Mr. Abdul Shettima, also reiterated the pledge by NERC to ensure a refund to customers who paid for meters under the Credited Advanced Payment for Metering Implementation (CAPMI) scheme, which it admitted was a failed initiative.

He recalled that when the power sector was privatised, metering was one of the key components that the core investors were required to address, plus loss of reduction and network upgrade, but noted that unfortunately because of cost reflectivity , technical partnership and a lot other issues, none of those targets were met.

Shettima stated that at the time of handover to the core investors, the CAPMI programme was in place, stressing that before then, when the sector was was still completely under government control, over N9 billion had been expended on the metering problem without results.

“Nothing much came out from that initiative. Then the CAPMI came on board, and there was resistance by the core investors at the beginning of the programme, maybe because they didn’t understand the mechanics of the programme very well or they felt it was different from their own plans.

“Finally, when they were on board, the CAPMI wasn’t working well with a lot of complaints from customers making payments and not getting meters.

“Then the Meter Assets Provider (MAP) came up with a lot of optimism from all stakeholders. Unfortunately, we had some teething problems when it started, the main one being the customs levy which made the pricing unviable,” he said.

Shettima, who explained that after getting round the customs issue, then exchange rate issue became a problem, expressed optimism that the numbers had started picking up with the new scheme.

He argued that there’s a bit of impatience in the industry, adding however that it was because, “things are not working well”, which he said is understandable.

He opined that since the advent of the National Mass Metering Programme (NMMP) funded by the government, the stakeholders have realised that to make any progress, there have to be meters in place.

“I agree on the issue of project management, it is a key aspect. If you don’t do it well, surprises will come up and then the programme starts faltering. It is important to monitor and enforce sanctions where there are breaches.

“Contracts have to be respected, the penalties in the contract will

Governor Udom Emmanuel of Akwa Ibom has called on the United States of America and its investors to come and partner the state in the development of the Ibom Deep Seaport project.

The Governor made the call in Uyo when the Chief of Political and Economic Affairs of the United States Consulate in Nigeria, Mr. Brandon Hudspeth, visited him at Uyo, noted that by its sheer conceptualisation, the Ibom Deep Seaport was programmed to become the flagship of the shipping industry in this part of the world in view of its strategic location which is endowed with a natural draught and direct access to all parts of the world including the Americas.

Represented by the Deputy Governor of the state, Mr. Moses Ekpo, the governor observed that the United States has enjoyed a very robust bilateral relationship with Nigeria since the nation’s independence.

He added that huge investment opportunities abound in the state for American investors to take advantage. He further used the opportunity to appreciate the American government for supporting Dr. Ngozi Okonjo-Iwela as the Director General of the World Trade Organisation.

Assuring the US envoy that the peaceful ambience which the state offers, is the best in Nigeria for investors. The governor invited the US to take advantage of the enormous business opportunities, especially in the Ibom Deep Seaport project which has received the approval by the federal government.

The Governor who cited Exxon Mobil as an American company already enjoying the state’s favourable ambience, urged the Consulate to encourage the oil major to relocate its headquarters to the state as a way of encouraging other international oil companies, IOC’s, especially, as the state government has invested heavily in state of the art infrastructure that are compliant to global standards such as the 21-storey intelligent building built by the state government.

Emphasising that his administration was people-oriented with strategic programmes meant to promote the well-being of the citizenry, the governor welcomed the initiative by the US envoy to visit the state, and promised his cooperation to enable the US contribute its quota in this direction.