Open AccessThe Challenges of Estimated Billing on Electricity Consumers in Nigeria: A Review
Author(s) -
A. O. Soyemi,
I. A. Samuel,
A. A. Olajube Ayobami,
A. Akinmeji
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/730/1/012025
Subject(s) - nigerians , tariff , electricity , government (linguistics) , metering mode , business , distribution (mathematics) , market liquidity , electric power distribution , finance , environmental economics , economics , engineering , mechanical engineering , mathematical analysis , linguistics , philosophy , electrical engineering , mathematics , voltage , international trade , political science , law
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.