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Nigeria’s Widening Metering Gap and Rising Estimated Billing Customers

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NERC's new meter pricing sparks divergent opinions among industry and consumers
Nigeria is facing significant challenges in its effort to eliminate estimated billing by the end of 2024

Nigeria is facing significant challenges in its effort to eliminate estimated billing by the end of 2024. The recent increase in the number of customers on estimated billing across the country’s electricity distribution companies (DisCos) highlights these hurdles. According to the Nigeria Electricity Report by the National Bureau of Statistics (NBS) for the first quarter of 2024, there has been a 10% quarter-on-quarter increase in estimated billing customers, widening the metering gap.

Key Findings

  • Increase in Estimated Billing Customers:
    • The number of customers on estimated billing rose from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a 10% increase.
    • Year-on-year, the number of estimated billing customers increased by 8%, from 5.96 million in Q1 2023.
  • Challenges and Government Subsidies:
    • The government continues to subsidize customers not on Band A, while Band A customers on estimated billing still pay based on estimation.
    • This increase highlights the persistent inability to adequately meter all customers, leading to a reliance on estimated billing.
  • DisCo-Specific Data:
    • Ibadan Electricity Distribution Company (IBEDC): Recorded the highest number of estimated billing customers at 1.41 million in Q1 2024, up from 1.37 million in the previous quarter.
    • Enugu Electricity Distribution Company (EEDC): Saw a significant increase to 765,662 customers from 709,104 in Q4 2023.

Customer and DisCo Disputes

The reliance on estimated billing often leads to disputes between consumers and DisCos. Many consumers feel that the estimates are inflated and do not reflect their actual consumption, prompting calls for more accurate metering.

Regulatory Actions

The Nigeria Electricity Regulatory Commission (NERC) fined 11 electricity distribution companies a total of 5 billion Naira for non-compliance with mandatory capping of estimated billing for unmetered customers.

Metering Progress and Challenges

  • Metered Customer Growth:
    • The report shows a modest 5% quarter-on-quarter increase in metered customers, from 5.61 million in Q4 2023 to 5.91 million in Q1 2024.
    • Year-on-year, metered customers increased by 11%, from 5.31 million in Q1 2023.
  • DisCo Challenges:
    • DisCos face financial constraints, logistical issues, and regulatory hurdles in closing the metering gap.
    • Abuja Electricity Distribution Company (AEDC): Increased its metered customers to 892,028 in Q1 2024.
    • Benin Electricity Distribution Company (BEDC): Raised its metered customers to 672,179 in Q1 2024.

Total Customer Base

The total number of customers served by DisCos in Nigeria has shown consistent growth:

  • In Q1 2024, the total customer base grew to 12.33 million from 12.12 million in Q4 2023, a quarter-on-quarter rise of 2%.
  • Year-on-year, this represents a 9% increase from 11.27 million in Q1 2023.

Notable DisCo Data:

  • Ibadan Electricity Distribution Company (IBEDC): Highest total number of customers at 2.48 million in Q1 2024.
  • Enugu Electricity Distribution Company (EEDC): Substantial customer base with 1.39 million in Q1 2024.
  • Abuja Electricity Distribution Company (AEDC): 1.46 million customers, reflecting a significant presence in the capital region.

Presidential Campaign and Policy Implementation

President Bola Tinubu’s campaign manifesto outlined plans to eliminate estimated billing and ensure all Nigerian homes and businesses are equipped with prepaid meters. Despite these intentions, the number of estimated billing customers has seen the largest growth rate both quarterly and yearly under his administration, based on data up to 2022.

Financial and Operational Impact

The rise in estimated billing has led to collection losses for DisCos. Revenue collected by DisCos dropped by approximately 1.13%, from N294.95 billion in Q4 2023 to N291.62 billion in Q1 2024. This decline underscores the financial strain on DisCos and the urgent need for comprehensive metering solutions.

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Conclusion

Addressing the metering gap requires concerted efforts from all stakeholders, including government support, investment in metering infrastructure, and improved regulatory frameworks. While there has been progress in increasing the number of metered customers, the rate of growth is insufficient to counterbalance the rapid rise in estimated billing customers. Comprehensive metering is essential for efficient billing, revenue collection, and overall customer satisfaction in Nigeria’s electricity sector.

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Ukraine and US Reach Minerals Agreement Amid Ongoing War

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Ukraine and US Reach Minerals Agreement Amid Ongoing War

Ukraine has confirmed an agreement with the United States on a minerals deal, calling it a “positive outcome” with “good amendments,” though officials have yet to disclose further details.

Media reports suggest that Washington has dropped an initial demand for a $500 billion share in potential revenue from Ukraine’s natural resources. However, the deal does not appear to include the firm security guarantees that Kyiv had sought.

US President Donald Trump announced that Ukrainian President Volodymyr Zelensky is expected to travel to Washington this week to finalize the agreement. The development follows a series of tense exchanges between the two leaders.

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While Trump did not explicitly confirm the deal’s finalization, he stated that in return, Ukraine would get “the right to fight on.” Acknowledging Ukraine’s resilience, he added, “Without the United States and its money and its military equipment, this war would have been over in a very short period of time.”

When asked whether US military support for Ukraine would continue, Trump indicated that assistance might persist “until we have a deal with Russia,” stressing the need for a negotiated settlement to end the conflict. He also suggested that any future peace deal would require “some form of peacekeeping” acceptable to all parties involved.

Ukraine possesses vast deposits of critical minerals such as lithium and titanium, alongside substantial reserves of coal, gas, oil, and uranium—resources valued in the billions. Trump has framed the agreement as one that will allow the US to recoup more than it has spent on supporting Ukraine. However, final details of the deal reportedly remain under negotiation.

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Australian Nurses Suspended Over Antisemitic Video Amid National Crackdown on Hate Speech

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Australian Nurses Suspended Over Antisemitic Video Amid National Crackdown on Hate Speech

Two Australian nurses have been suspended after a video surfaced showing them making violent antisemitic remarks, including threats to harm Israeli patients. The incident, which allegedly took place at a hospital in Sydney, has sparked outrage and is now under police investigation.

New South Wales (NSW) Health Minister Ryan Park confirmed that the two individuals had been stood down immediately and would never work in the state’s healthcare system again. Authorities are conducting a thorough review of hospital records to ensure no patients were harmed, though a rapid preliminary check found nothing unusual.

Australian Prime Minister Anthony Albanese condemned the video as “sickening and shameful,” emphasizing that antisemitism has no place in Australia. His comments come just days after the country passed stricter hate crime laws in response to a surge in antisemitic incidents.

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The video, shared online by Israeli content creator Max Veifer, appears to have been recorded in a hospital setting. In the footage, a man claiming to be a doctor tells Veifer he has “beautiful eyes” but adds, “I’m sorry you’re Israeli,” before making a throat-slitting gesture and stating he sends Israelis to “Jahannam” (an Islamic concept of hell). A woman later appears on screen, saying she refuses to treat Israelis and will “kill them” instead.

Despite the video being edited with emojis and censoring certain comments, authorities have not questioned its authenticity. NSW Police stated they have identified the individuals involved and are investigating whether criminal charges should be pursued.

Albanese vowed that anyone found guilty of committing hate crimes will “face the full force of our laws.” Park echoed this sentiment, apologizing to the Jewish community and reassuring them that NSW hospitals remain committed to providing “first-class” healthcare to all patients, regardless of background.

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Coca-Cola May Increase Plastic Bottle Use Due to Trump’s Aluminium Tariffs

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Coca-Cola May Increase Plastic Bottle Use Due to Trump’s Aluminium Tariffs

Coca-Cola has warned that it may have to increase the use of plastic bottles in the U.S. if President Donald Trump’s new tariffs make aluminium cans too expensive. The announcement was made by Coca-Cola CEO James Quincey during a call with investors.

Trump’s recent order imposes a 25% import tax on all steel and aluminium entering the U.S., a move expected to raise costs for canned food and beverage manufacturers. Quincey acknowledged that Coca-Cola could shift more emphasis to PET plastic bottles to manage affordability.

“If aluminium cans become more expensive, we can put more emphasis on PET bottles,” he said, while noting that packaging costs are only a small fraction of the company’s overall expenses.

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This shift comes shortly after Coca-Cola scaled back its sustainability goal of using 50% recycled materials in its packaging by 2030, adjusting the target to 35-40% by 2035. The beverage giant has been under pressure from environmental groups, which have labeled it the world’s “top global plastic polluter” for six years in a row.

Aluminium cans, despite being pricier, are far more recyclable than plastic bottles. The U.S. imports nearly half of its aluminium, according to the United States Geological Survey, making the tariffs a significant factor in production costs. Unlike in 2018, when some can-makers received exemptions from similar tariffs, Trump has now ruled out any exceptions for products or countries.

In a separate move, Trump also signed an executive order rolling back efforts to replace plastic straws with paper alternatives in government facilities—undoing a policy introduced by former President Joe Biden, who had called plastic pollution a “crisis.”

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