CBN releases framework for financing of mass metering
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The Central Bank of Nigeria, CBN, has released its framework for National Mass Metering Programme, NMMP.
The framework was released by the Development Financing department of the apex bank through its official website on Monday.
It stated that introduction of the Service-Based Tariff, SBT, in the Nigeria Electricity Supply Industry, NESI, effective September 1, had put increased emphasis on the need to close the metering gap in the NESI.
“Closing this gap will enhance efficiency of revenue collection by Distribution Companies (DisCos) and thereby facilitate meeting their obligations to other upstream market participants.
“According to analysis provided by Nigeria Electricity Regulatory Commission, the current metering gap in the NESI – based on recent customer enumeration data – is over 10 million.
“This comprises of unmetered customers as well as customers with obsolete meters that need to be replaced,’’ it stated.
CBN stated that the framework outlines the operational modalities of the CBN financing support to the DisCos (Downstream), and Local Meter Manufacturers (Upstream).
It added that key objectives of the NMMP included increasing Nigeria’s metering rate, elimination of arbitrary estimated billing, strengthening the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity.
“It will support Nigeria’s economic recovery by creating jobs in the local meter value chain and reducing collection losses and increasing financial flows to achieve 100 per cent market remittance obligations of the DisCos.
“It will also improve network monitoring capability and availability of data for market administration and investment decision making,’’ it stated.
