Experts blame forex, excise duty for electricity prepaid meters hike

Experts in the power sector have blamed the increase in prepaid electricity meters on fluctuations in the foreign exchange market and increase in Customs charges and Naira devaluation, among others.

The stakeholders expressed their concerns in separate interviews on Thursday.

The reaction follows the Nigerian Electricity Regulatory Commission’s approval of a 40 per cent rise in the price of electricity prepaid meters.

Kunle Olubiyo, President of Nigeria Consumer Protection Network, said that importers of the semi-finished prepaid meters and meter assembling plant owners thought the prices should have been higher.

According to him, the importers and plant owners wanted the price of single-phase meters to be N90,000 while a three-phase at N160,000 or more.

Olubiyo said that, in the meantime, stakeholders should work out modalities to enable electricity consumers to acquire already calibrated electricity meters at designated points under strict supervision.

“Considering the low income or disposable incomes of an average Nigerian, it might be difficult for many to afford the new rates without a mechanism for refunds via electricity token.

“This may further increase the huge metering gaps in the electricity market,” he said.

Prof. Yemi Oke, a legal consultant and energy advisor, said the price increase was unavoidable, considering the present situation in the country.

“It is not for meter alone, even those goods that are manufactured locally. It also affects imported meters assembled in Nigeria or manufactured in Nigeria.

“The meter component has gone up, given the current exchange rates.

“There is a need for government to look into the issues of forex, particularly for metering. What matters is that people should have access to meters, and the meters are properly calibrated so that no consumers are shortchanged.

“I wonder if some meter had been calibrated in a way. I’ll advise that Nigerians should not be subjected to meter manipulation or calibrated in a way to reap them.


“There is no evidence that existing meters are faulty or malfunctioning. There is no point calling for upgrading or calibration,” Oke added.

Similarly, Adetayo Adegbemle, Convener, PowerUp Nigeria, said the increase in meter prices was a response to the changes in the economic indices.

Adegbemle said: “We should give some kudos to NERC for not loading the full effect on the published prices.

“However, this is an opportunity to further push for reverting to local content and manufacturing as an effective measure to control the prices of meters.

“We have pushed for the use of funds saved from fuel subsidy removal to address this issue of metering gap effectively.

“This is something that will reach and help Nigerians manage their funds,” he said.