State governors across Nigeria have called on the federal government to enforce a “no-meter, no-service” policy for all new electricity connections.
This plea is part of a comprehensive set of recommendations outlined in the “Development of the National Integrated Electricity Policy & Strategic Implementation Plan: Policy Recommendations by State Governments to the Federal Ministry of Power,” which was seen by Channels Television on Monday.
In the document, the governors highlighted the critical role of electricity meters in bridging the significant metering gap, essential for the viability of sub-national electricity markets.
They emphasized that State Electricity Regulatory Commissions (SERCs) should have the autonomy to determine the most suitable meter technology, type, and form for deployment within their states.
“States believe that the provision of electricity meters to close the huge metering gap is a necessary requirement to make sub-national markets viable,” the document read, stressing the need for a “no-meter, no-service” policy to prevent the gap from widening further.
The state governors also underscored their plans to phase out electricity subsidies, arguing that such subsidies have been inefficient and ineffective over the past 15 years.
“Electricity is a commodity and a product that must be paid for by consumers,” they stated, adding that subsidies have historically covered inefficient costs and poor service delivery rather than improving quality and reliability.
They noted that millions of households in underserved and unserved communities end up paying more than twice the average cost of on-grid supply due to these inefficiencies.
The recommendations also called for a transparent and precise framework for the application of any necessary electricity subsidies, ensuring that they benefit the appropriate customer categories and regions equitably.
They suggested that subsidies should be reduced and eventually eliminated, except where specifically needed to promote universal access to electricity.
The governors proposed that any future subsidies should be jointly administered by the federal and state governments to ensure they do not undermine the viability of state electricity markets.
