NBS Report Highlights Widespread Use of Estimated Billing in Nigeria
A recent report by the National Bureau of Statistics (NBS) has revealed that a significant portion of Nigerian households, approximately 85.2%, still rely on the estimated billing system for electricity tariffs.
The Nigeria Residential Energy Demand-Side Survey Report 2024 indicates that only 14.8% of households utilize the prepaid metering system. This disparity in billing methods has led to widespread dissatisfaction among consumers due to perceived inaccuracies and inflated charges.
The survey, conducted across six geopolitical zones, found that households in Bauchi State had the highest reliance on estimated billing, with 97.9% of consumers affected. In contrast, Plateau State had the lowest reliance, with only 69.1% of consumers on estimated billing.
In terms of average monthly electricity expenditure, Enugu State recorded the highest figure at N7,319.4, while Bauchi State had the lowest at N2,647.7.
To address the challenges posed by estimated billing, the Nigerian Electricity Regulatory Commission (NERC) has mandated electricity distribution companies (DisCos) to allocate N275 billion for meter procurement from 2024 to 2027. Additionally, the World Bank has introduced a $500 million metering program to accelerate the deployment of meters and improve billing accuracy.
The widespread use of estimated billing and the associated issues highlight the need for urgent reforms in the Nigerian electricity sector. By accelerating the deployment of meters and improving billing practices, the government aims to enhance transparency, reduce consumer dissatisfaction, and promote a more equitable electricity distribution system.
