Nigeria buys 1.37m Chinese meters under $500m World Bank loan to bridge widening metering gap
Nigeria has procured about 1.37 million electricity meters manufactured in China under a $500m facility secured from the World Bank, as authorities intensify efforts to reduce the country’s estimated 10 million metering shortfall.
Details contained in a restructuring document released by the bank indicate that a contract for the first batch of 1.44 million meters was signed in August 2024 and became effective in February 2025. Of that figure, 95 per cent — approximately 1,368,000 units — have already been manufactured and are either awaiting shipment in China or in transit to Nigeria.
The development is part of the Nigeria Distribution Sector Recovery Programme (DISREP), a $500m intervention approved in February 2021 to improve the financial and technical performance of electricity distribution companies.
According to the restructuring paper, about 408,000 meters from the first batch have arrived in Nigeria. However, installation progress remains comparatively slow, with only about 130,000 units deployed so far.
The disparity between meters delivered and meters installed has raised concerns among stakeholders about execution capacity and logistical bottlenecks within the distribution segment.
The Nigeria buys 1.37m Chinese meters under $500m World Bank loan initiative is expected to significantly reduce estimated billing, enhance revenue assurance for DisCos, and improve transparency for consumers who have long complained about arbitrary charges.
Despite this progress, officials acknowledge that the pace of deployment must accelerate if the country is to meaningfully close its metering gap.
Financial data from the programme show that of the $500m commitment from the International Bank for Reconstruction and Development arm of the World Bank, only $69.09m had been disbursed as of the reporting date. This represents a disbursement rate of 13.82 per cent, leaving more than $404m yet to be drawn down.
The programme is structured as a hybrid model comprising a $250m Program-for-Results component and a $250m Investment Project Financing component.
The IPF segment funds bulk meter procurement, meter data management systems, a Data Aggregation Platform, technical assistance, and institutional capacity building.
Energy analysts say the relatively low disbursement rate reflects procedural safeguards, performance benchmarks, and phased implementation milestones tied to the financing framework.
Addressing a 10 million metering gap
Nigeria currently has over seven million unmetered customers connected to the national grid, alongside an estimated three million cascading connections. Combined, this translates to roughly 10 million customers without accurate metering.
The Nigeria buys 1.37m Chinese meters under $500m World Bank loan programme aligns with the Presidential Metering Initiative approved in November 2023. The initiative aims to deploy more than five million smart meters by 2027 and reduce Aggregate Technical, Commercial and Collection (ATC&C) losses from over 40 per cent to about 20 per cent within three years.
The World Bank document states that DISREP will support the initiative by procuring an additional 3.2 million meters. Based on an average household size of 4.1 persons, the bank estimates that these meters could provide improved electricity access to approximately four million Nigerians.
Industry experts describe the distribution segment as the weakest link in Nigeria’s power value chain, plagued by revenue leakages, non-technical losses, and widespread customer distrust stemming from estimated billing practices.
The decision to import a large volume of meters from China has drawn criticism from the Association of Meter Manufacturers of Nigeria, which represents about 40 certified local producers and assemblers.
The association argues that domestic production capacity exists and should be prioritised in line with the administration’s “Nigeria First” policy under President Bola Tinubu, which seeks to discourage the importation of goods that can be produced locally.
AMMON has expressed concerns about potential delivery delays, foreign exchange exposure, and the missed opportunity for job creation within Nigeria’s manufacturing ecosystem. The group has urged the government to adopt National Competitive Bidding as the default procurement mechanism to ensure local content inclusion.
Proponents of local sourcing contend that empowering domestic manufacturers would stimulate industrial growth, conserve foreign exchange, and build long-term technical capacity in smart metering technology.
Beyond the first 1.44 million meters, authorities have disclosed that contracts for 217,000 domestically procured smart meters are expected to be finalised by the end of January 2026.
Additionally, procurement for a second batch of 1.5 million smart meters was launched in January 2026.
The Nigeria buys 1.37m Chinese meters under $500m World Bank loan project therefore represents only one component of a broader rollout strategy spanning multiple phases and procurement channels.
Officials from the Bureau of Public Enterprises have reiterated that the overall objective is to roll out 3.2 million smart meters over a four-year period through a mix of international and local competitive bidding.
However, stakeholders admit that installation figures — currently between 150,000 and 200,000 meters — remain below expectations.
Metering reform is widely regarded as foundational to the financial sustainability of Nigeria’s electricity market. Without accurate metering, distribution companies struggle to collect cost-reflective tariffs, while consumers lack confidence in billing accuracy.
The Nigeria buys 1.37m Chinese meters under $500m World Bank loan initiative is expected to enhance revenue assurance, reduce commercial losses, and strengthen data transparency across the grid.
Improved metering also supports regulatory oversight by the Nigerian Electricity Regulatory Commission, enabling more precise monitoring of consumption patterns and loss levels.
Energy economists caution, however, that metering alone will not resolve structural issues such as generation shortfalls, transmission constraints, and liquidity challenges within the market.
For the programme to deliver sustainable impact, experts argue that meter deployment must be complemented by broader reforms in tariff structures, infrastructure investment, and governance accountability.
As Nigeria pushes to modernise its electricity distribution architecture, the speed and transparency of meter deployment will remain under close scrutiny from consumers, industry players, and development partners alike.
