The Challenges of Estimated Billing on Electricity Consumers in Nigeria: A Review

Abstract

Despite Government efforts, over 4.6 million Nigerians are on the estimated billing system. Nigeria has one of the highest aggregate technical, commercial and collection losses at 43.65%, which has been attributed to low investments in distribution networks exacerbated by the slow progress of metering of customers which has posed a protracted liquidity challenge to the industry. There is a need to reduce these losses; hence this paper examined the Nigerian electricity billing system through meta-analysis of literature, with a focus on estimated billing, the metering situation, and its challenges in Nigeria. Finally, solutions such as the implementation of a cost reflective tariff scheme are proffered through recommendations to distribution companies and the Federal Government of Nigeria.