NewsNigeriaPoliticsPresident Tinubu’s $500m Loan Request for Electricity Meters Receives Senate’s Seal of Approval

In a significant move aimed at addressing Nigeria’s longstanding electricity metering challenges, the Nigerian Senate has given its nod to President Bola Tinubu’s proposal for a $500 million loan to finance the procurement of electricity meters across the nation.

The loan was part of the $7.94 billion World Bank loan which President Tinubu sought the Senate’s approval for on 1 November 2023.

The President, in his proposal, emphasised the critical role of adequate metering in enhancing transparency, accountability, and revenue generation within the power sector.

He highlighted the loan’s pivotal role in accelerating the deployment of meters to consumers nationwide, thereby promoting fair billing practices and minimising disputes between electricity distribution companies and consumers.

The $500 million loan is expected to facilitate the procurement and installation of millions of electricity meters across Nigeria, ultimately leading to improved electricity supply, reduced losses, and enhanced consumer satisfaction. It is also aimed at tackling the longstanding issue of estimated billing.

The approval of the loan by the Senate, made after a thorough deliberation on Wednesday, reflects a bipartisan consensus on the urgency of addressing Nigeria’s electricity metering deficit, which has been a major impediment to the sector’s efficiency and viability.

“The programme development objective of this project is to improve financial and technical performance of electricity distribution companies,” the Senate report said.

After considering the report, the Deputy President of the Senate, Jibrin Barau, who presided over the meeting, ruled in favour of the loan request approval after the senators unanimously voted for approval.

Lawmakers expressed confidence in the government’s ability to effectively utilise the funds and ensure accountability in the meter procurement process.

With the Senate’s approval secured, all eyes are now on the implementation phase, as stakeholders eagerly await the commencement of the metering project and the tangible benefits it promises to deliver to both consumers and the power sector at large.