Nigeria’s federal government has shifted its strategy for addressing the power sector’s tariff deficit, prioritizing a comprehensive audit of metering infrastructure over an immediate withdrawal of subsidies.
The administration indicated that wider deployment of electricity meters is the preferred mechanism to close the revenue gap, signaling a move toward structural reform rather than abrupt fiscal tightening.
This development marks a distinct pivot from earlier market expectations that subsidy removal would be the primary lever for fiscal consolidation.
By focusing on metering, the government aims to improve revenue collection efficiency and reduce the reliance on estimated billing, which has historically plagued the sector’s financial viability.
The approach suggests a more gradual adjustment path for consumers and utilities alike.
The policy shift aligns with the recently launched Power Force Programme, a national initiative designed to train 5,000 individuals, including members of the National Youth Service Corps (NYSC), as electricity meter installers.