Abuja, Nigeria. May 23rd, 2023 – A new public opinion poll conducted by NOIPolls has revealed ownership of fixed pre-paid metering is limited to only 37 per cent of the electricity customers in Nigeria. The rest of the customers are divided among those who use post-paid meters and those who do not have a meter, but simply pay fixed amounts of money for electricity. Being the most efficient way to distribute electricity, usage of pre-paid meters is highest in the North-East zone and lowest in the South-East zone.
Further findings revealed that among all respondents, those paying amounts within the band of ₦1,000 – ₦5,000 per month represent the largest group of users (44 per cent). More findings showed that on average, most electricity customers around the country (68 per cent) have a power supply for less than 9 hours per day including 5 per cent that have no electricity supply at all. In addition, when respondents were asked if they are willing to pay more to get 24 hours of electricity, findings revealed that most of the respondents (67 per cent) expressed willingness to pay more for a steady electricity supply in their respective households.
Therefore, while further reforms of the electricity sector are imminent, it is essential to further develop the private energy market and improve accountability in the sector. Also, given that 43 per cent of the respondents disclosed that they do not have pre-paid meters, it is therefore pertinent that stakeholders responsible for the distribution and installation ensure that all electricity users have pre-paid meters in their households. These are some of the key findings from the Electricity Poll conducted in the week commencing May 1st, 2023.
Background
Nigeria’s electricity problem has a perennial and teething problem that has gone on unabated for years without the requisite solution in sight[1]. As a result, Nigerians have continued to grope in darkness due to the challenges bedevilling the power sector in the country.
According to World Bank statistics, 85 million Nigerians do not have access to grid electricity[2]. This is a staggering figure considering the country’s estimated population of 200 million people and makes Nigeria a country with the largest energy access deficit in the world. The lack of reliable power is a substantial constraint for citizens and businesses, resulting in annual economic losses estimated at $26.2 billion (₦10.1 trillion) which is equivalent to about 2 per cent of the GDP[3]. According to the 2020 World Bank Doing Business report, Nigeria ranks 171 out of 190 countries in getting electricity and its access is seen as one of the major constraints for the private sector[4].
Additionally, according to reports, 8 out of 10 Nigerians lack access to 10 hours of power supply[5]. This means that most households and businesses do not have access to electricity for up to 10 hours. This has made doing business in the country increasingly difficult as most companies incur additional costs to have access to electricity through generating plants. Also, the unavailability and high cost of diesel, and petrol have further compounded woes and increased prices of goods in the market[6].
Furthermore, in a bid to x-ray the challenges confronting the electricity sector, a whole lot of challenges were unearthed, and they include lack of investment, power losses over long distances, need for grid modernization, corruption in the power sector, and terrorist attacks[7] therefore, needs to be tackled head-on if there will be any significant progress in the power sector. Against this background, NOIPolls surveyed to feel the pulse of Nigerians regarding this critical sector of the economy and hereby presents its findings.
Survey Findings
The first question sought to gauge the proportion of electricity consumers nationwide who are connected to the national grid and the survey findings showed that 94 percent of the respondents claimed that they are connected to the national grid. Responses cut across gender, geopolitical zones, and age-group with a minimum representation of 91 per cent. However, 6 per cent claimed that they are not connected to the national grid.
Subsequently, respondents were asked if they have electricity meters in their houses and the poll result revealed that almost 6 in 10 (57 per cent) of respondents acknowledged they have electricity meters in their respective houses. The South-West (67 per cent) zone had the larger proportion of respondents with this assertion. On the other hand, 43 per cent of those connected to the national grid disclosed that they do not have an electricity meter in their houses.
Out of the 43 per cent of respondents not metered, 62 per cent claimed that they pay for electricity bills by estimation or direct billing by PHCN. Similarly, while 21 per cent stated that they use a generator to power their houses, 14 per cent mentioned they use solar power as an alternative source of electricity supply. Interestingly, 3 per cent disclosed that they do not use any form of electricity supply in their houses.
On the other hand, out of the 57 per cent who indicated that they have an electricity meter, 65 per cent (representing 37 per cent of all the respondents) disclosed that they use prepaid meters. Analysis by geo-political zones showed that the North-East zone had more consumers who mentioned that they use prepaid meters in their respective households.
Also, 33 per cent claimed that they use the post-paid meter in their household and respondents from the South-East zone had the larger proportion of respondents (44 per cent) who made this assertion.
Furthermore, when respondents were asked to state the amount they spend on electricity consumption in their household per month, the findings showed that 44 percent of the respondents stated they spend between ₦1,000 and ₦5,000. A closer look at the geopolitical zones indicated that the North-West (52 per cent) and the South-West (49 per cent) zones had more respondents who pay between ₦1,000 and ₦5,000 per month.
Further analysis on consumption revealed that amongst respondents within the pay band of ₦1,000 and ₦5,000, respondents who do not have an electricity meter (57 per cent) pay the highest amount due to estimated billing. Similarly, while 47 per cent of respondents who have a post-paid meter stated that they pay within a band of ₦1,000 and ₦5,000, 46 per cent of pre-paid respondents also pay the same amount.
In comparing the amount paid for electricity vis-a-vis the consumption, most respondents (69 per cent) reported that the amount they spend on electricity bills is not commensurate with their consumption. This assertion cuts across gender, geopolitical zones, and age-group with a minimum representation of 62 per cent. On the contrary, 18 per cent claimed that the amount they pay is commensurate with their consumption.
The poll also sought to know on average, the hours of cumulative power supply electricity consumers receive daily. Findings revealed that 68 per cent of Nigerians get 1 – 9 hours out of 24hrs of power supply. The poll further revealed that 15 per cent receive 10 – 15 hours, 4 per cent have 15 – 20 hours of electricity daily, and 4 per cent of respondents mentioned that they get between 20 – 23 hours daily. Interestingly, the analysis also showed that only 1 per cent of electricity consumers in the country claimed to have 24 hours of electricity supply. On the flip side, 3 per cent stated that they receive less than 1 hour of power supply in a day, while 5 per cent reported a total blackout in 24 hours.
When respondents were asked if they are willing to pay more to get 24 hours of electricity, findings revealed that the majority of respondents (67 per cent) affirmed that they are willing to pay more for a steady electricity supply. The North-West (76 per cent) zone accounted for the larger number of electricity consumers who said they will be willing to pay more to get 24 hours of electricity. Also, respondents within the age bracket 18 – 35 years (71 per cent) are willing to pay more for electricity. On the contrary, 23 per cent of respondents stated they will not be willing to pay more to get 24 hours of power supply.
Conclusion
The poll has shown that ownership of pre-paid meters is low as only 37 per cent of electricity customers in Nigeria have access to it. This implies that the rest of the customers are divided among those who use postpaid meters and those who do not have a meter. With regards to the cumulative hours of electricity supply, on average, 68 per cent of electricity customers around the country have a power supply for less than 9 hours per day including 5 per cent that have no electricity supply at all. In addition, most electricity customers (44 per cent) pay within the band of ₦1,000 – ₦5,000 per month while 24 per cent pay within the band of ₦6,000 – ₦51000 monthly. Nonetheless, 67 per cent disclosed they are willing to pay more for a steady electricity supply in their respective households. Finally, stakeholders in the electricity sector are advised to synergize and develop the electricity sector as 67 per cent are willing to pay more to have 24 hours electricity supply in their households.
Survey Methods
The opinion poll was conducted in the week commencing May 1st, 2023. It involved telephone interviews of a proportionate nationwide sample of 1,000 randomly selected phone-owning Nigerians aged 18 years and above, representing the six geo-political regions and 36 states and the FCT of the country. Interviews were conducted in 5 languages – Igbo, Hausa, Yoruba, Pidgin English, and English. Although we can say with 95% confidence that the results obtained were statistically precise – within a margin of error of plus or minus 4.65%; we recognize that the exclusive use of telephone polling has its limitation of excluding non-phone-owning Nigerians. Nonetheless, with the country’s tele density put over 100 per cent by the Nigerian Communications Commission (NCC), we consider our telephone polling approach appropriate. Also, given the rigorous scientific process of randomization and stratification applied, we can confidently stand by the validity of our methodology and approach. NOIPolls Limited, No. 1 for country-specific polling services in West Africa. We conduct periodic opinion polls and studies on various socio-economic and political issues in Nigeria. More information is available at www.noi-polls.com.
Disclaimer
This press release has been produced by NOIPolls Limited to provide information on all issues which form the subject matter of the document. Kindly note that while we are willing to share results from our polls with the public, we only request that NOIPolls be acknowledged as authors whenever and wherever our poll results are used, cited, or published. NOIPolls hereby certifies that all the views expressed in this document accurately reflect the views of respondents surveyed for the poll, and background information is based on information from various sources that it believes are reliable; however, no representation is made that it is accurate or complete. Whilst reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or facts, or any views expressed herein by NOIPolls for actions taken because of information provided in this report. Any ratings, forecasts, estimates, opinions, or views herein constitute a judgment as of the date of this document. If the date of this document is not current, the views and content may not reflect NOIPolls' current findings and/or thinking.
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[1] https://punchng.com/92-million-nigerians-lack-access-to-electricity-worst-globally-report/
[2] https://www.worldbank.org/en/news/press-release/2021/02/05/nigeria-to-improve-electricity-access-and-services-to-citizens
[3] https://www.worldbank.org/en/news/press-release/2021/02/05/nigeria-to-improve-electricity-access-and-services-to-citizens
[4] https://www.worldbank.org/en/news/press-release/2021/02/05/nigeria-to-improve-electricity-access-and-services-to-citizens
[5] https://nairametrics.com/2023/02/05/how-much-does-nigeria-need-to-get-24-7-electricity/
[6] https://nairametrics.com/2023/02/05/how-much-does-nigeria-need-to-get-24-7-electricity/
[7] https://fuergy.com/blog/7-problems-and-challenges-of-a-power-grid