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CBN unveils framework for financing of mass metering

By David Oladele

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mass metering
mass metering

The Central Bank of Nigeria (CBN) has unveiled its framework for the National Mass Metering Programme (NMMP).

The CBN on Monday, October 19, disclosed the framework by the Development Financing department through its official website.

The introduction of the service-based tariff (SBT) in the Nigeria Electricity Supply Industry (NESI) effective from 1st September 2020 has put increased emphasis on the need to close the metering gap in the NESI.

The closing of this gap will enhance the efficiency of revenue collection by Distribution Companies (DisCos) and thereby facilitate the meeting their obligations to other upstream market participants.

According to an analysis provided by Nigeria Electricity Regulatory Commission (NERC), 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.

To deal with this, His Excellency, President Muhammadu Buhari approved the National Mass Metering Program (NMMP) implementation.

This Framework outlines the operational modalities of the CBN financing support to the DisCos (Downstream) and Local Meter Manufacturers (Upstream).

The apex bank highlighted the key objectives of the NMMP as follow: 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.

 According to the CBN, “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 percent market remittance obligations of the DisCos“.

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“It will also improve network monitoring capability and availability of data for market administration and investment decision making,’’

@TechEconomyNG connects past-present-emerging technological impacts on Businesses, People and Cities. All Correspondence to: [email protected]

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