Nigeria’s Electricity Crisis: The Battle Against Estimated Billing

Nigeria’s Electricity Crisis: The Battle Against Estimated Billing

More than 11 years after the privatisation of Nigeria’s power sector, millions of electricity customers still don’t have prepaid meters. Instead, they continue to suffer from estimated billing, where consumers are charged for power they didn’t consume. This system often leads to “crazy billing,” where bills are drastically inflated, sometimes up to 10 times higher than the actual consumption.

Despite complaints and a regulatory body, the Nigerian Electricity Regulatory Commission (NERC), there is no real change. Most consumers have experienced this unfair billing system, often having to wait years before receiving prepaid meters—if at all.

A Shocking Case: The Deputy Governor’s Experience

Lagos State Deputy Governor Obafemi Hamzat recently shared his own ordeal with the Eko Electricity Distribution Company (Eko DisCo). In one month, the bill for his official residence was N2.7 million. The next month, it shot up to an outrageous N29 million. Even after attempting to fix the issue by installing a prepaid meter, the process was far from smooth. His experience sheds light on how, if someone in his position can be treated unfairly, regular Nigerians must be suffering even more.

The Widespread Issue: Unfair Billing and Consumer Complaints

Hamzat’s case is just one example. Former House Speaker Yakubu Dogara also faced similar problems with estimated billing back in 2018. Consumers are often forced to pay unjust debts from estimated bills, with DisCos continuing to ignore complaints. When prepaid meters are eventually installed, any outstanding debt is automatically deducted, leaving consumers powerless.

NERC, which is meant to regulate the industry, has imposed fines on some DisCos but these have been too weak to deter the companies. In fact, many Nigerians have given up on reporting these issues, knowing that their complaints will go nowhere.

The Need for Stronger Regulation and Full Metering

The solution to Nigeria’s metering and billing crisis lies in strong regulatory enforcement and full metering. If all consumers were metered, DisCos wouldn’t be able to impose inflated charges. As of 2025, over 7 million of Nigeria’s 13 million electricity customers are still unmetered, highlighting the need for immediate action to close the gap.

The government has started addressing this by ordering 3.2 million prepaid meters to be distributed in 2025. While this is a positive step, much more needs to be done to ensure that every Nigerian has access to accurate billing based on their actual electricity usage.

A Broader Power Crisis

However, even if the metering gap is addressed, Nigeria’s electricity generation remains a major challenge. The country’s national grid can only generate about 5,000 megawatts (MW), far below the needs of the population and much lower than other African nations like Egypt (59,093 MW) and South Africa (58,095 MW). This limited power generation capacity exacerbates the struggles consumers face daily.

The Way Forward

Solving Nigeria’s electricity crisis requires a concerted effort from all stakeholders. The government must accelerate metering, DisCos must be held accountable for their billing practices, and NERC needs to enforce stricter penalties for violations. Only through these combined efforts can Nigeria hope to overcome its electricity crisis and provide fair, reliable power to all consumers.

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