In the bustling Onyearugbulem junction of Akure, Ondo State, South West Nigeria, God’s-power Oyen’s computer center is a lifeline for many—offering photocopying, printing, and video editing services. But one fateful day in January 2024, his thriving business came to a standstill, not because of poor service but due to Nigeria’s fragmented power payment system.
When Oyen’s electricity subscription expired, he made an urgent payment through his bank app, only to be debited without receiving the crucial subscription token. Frustrated, he contacted customer service, who pointed fingers at network issues with the Meter Asset Provider (MAP). His business day became chaotic as waiting customers grew impatient and left, resulting in zero earnings.
He called some of his friends to see if there was a way to assist him but everyone complained about their bank networks or the bad network of the meter asset providers. That amounted to a wasted day because the large crowd waiting to transact with him all left and he didn’t make a dime.
The token finally arrived the following day, but the damage was already done.
“It was a wasted day,” he lamented.
Narrating his experience to Flora Iweanya, Godspower expressed frustration, sadness and disappointment questioning why there is no proper interoperability between the bank and meter asset providers.
Speaking in Pidgin Language, he said, “I never see this kind thing before for my life, I wait for sotee, I come dey wonder if na curse. I sat there looking at my customers coming and going without being able to attend to them, I was just begging for patience but nobody would listen especially as I didn’t have any means to attend to them after all, I accepted my fate at the end of the day, went home sad, frustrated and miserable,” Godspower narrated.
He continued, “ Is it not possible to find a way that confirms payment instantly instead of keeping one waiting for a whole day or even more?
He advised the implementation of real-time payment processing systems to facilitate prompt payment confirmation, reduce disputes and enhance the overall efficiency of the electricity billing and payment system.
A Crisis Beyond One Business
Oyen’s ordeal mirrors the daily struggles of countless Nigerians who rely on an increasingly fragmented power payment system. Across town, in Oke Ijebu, Akure, Ondo State, SouthWest, Nigeria, On 29th March 2024, Mrs Funke Tajudeen, a frozen food vendor, faced a similar nightmare.
Multiple failed attempts to pay her electricity bill left her in a panic as the power outage threatened to spoil her inventory. Despite trying different terminals and pleading with friends for help, the issue persisted for days, resulting in huge financial losses.
“By the time I resolved it with a friend’s help, it was already too late,” she said, pointing to her spoiled goods. “All because the banks and the meter agents are not properly connected.”
For both Oyen and Tajudeen, the lack of integration between payment systems and service providers has been devastating. These are not isolated cases but symptoms of a larger problem plaguing Nigeria’s power sector.
A System Plagued by Disconnection
Despite the availability of payment options like mobile money, POS terminals, and bank transfers, inefficiencies in Nigeria’s digital power payment systems persist.
Data from the Nigerian Electricity Regulatory Commission (NERC) reveals that only 115,767 customers received metering devices between April and July 2024. This leaves over 7.24 million electricity users relying on opaque estimated billing practices.
Even for customers with meters, like Godspower and Tajudeen access remains a challenge. Failed transactions, delayed payment confirmations, and poor customer service have become the norm, eroding trust in Nigeria’s digital public infrastructure.
Consumers report confusing payment channels, poor platform usability, and inadequate customer support. This disjointed system undermines trust in Nigeria’s digital public infrastructure (DPI), leaving both individuals and businesses in limbo.
Nigeria is grappling with more than just a metering issue. In March 2024, the Federal Government revealed that the number of Nigerians without access to electricity from the national grid has surged to approximately 92 million.
Experts Insights: The Path to Reform
An analyst Prof. Busuyi Mekusi, a lecturer in the Department of English Studies, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria stated that it is a very worrisome situation as it not only frustrates the subscriber but also undermines trust in the digital public infrastructure DPI system.
He opined that to address the challenge, it is essential to promote collaboration and standardization among service providers, MAP agents and other stakeholders in the DPI space.
“This can involve implementing robust network infrastructure, developing standardized payment protocols and establishing clear communication channels to ensure that subscribers’ transactions are processed efficiently and reliably.”
Prof. Mekusi also called for proper engagement with customers to understand their needs and preferences, using feedback to improve the payment process and overall customer experience.
“The issue of streamlining the payment process is very crucial at this point. It should be simplified through a reduction of the number of steps and documentation required. Imagine the plight the uneducated ones in the rural areas will go through trying to make payments. It will immediately discourage the person and that’s one consumer down,” said Prof. Mekusi.
Prof Mekusi added, “The frequent technical glitches, such as server errors or network downtime can also prevent customers from making payments. I call on all the regulatory bodies to set up proper monitoring processes and set a standard to be followed by MAP agents, Banks and Electricity companies.”
A MAP representative in Akure, Fisayo Olabode stated that he clearly understands customer’s frustration adding that there is a need for better coordination and stable policies to improve service delivery.
He emphasised that a collaborative approach involving consumers, Meter Asset Providers, Financial institutions and Nigeria Electricity Regulatory Commission NERC is crucial to transforming Nigeria’s power payment platforms into an efficient and transparent system.
“The current system lacks coordination, leading to inefficiencies and mistrust among stakeholders,” Olabode noted. “By working together, we can create a system that is transparent, efficient, and customer-centric.”
“Investors need a stable and predictable policy environment to commit to long-term investments in the power sector,” he said.
“With clear policies and regulations, we can attract more investment, improve service delivery, and ultimately, provide reliable and affordable electricity to Nigerian consumers.”
By adopting a collaborative approach and establishing stable policies, Nigeria can transform its power payment platforms and provide better services to consumers. As Olabode pointed out, “This is a critical step towards achieving a more efficient, transparent, and customer-centric power sector in Nigeria.”
Hope on the Horizon?
The public relations officer of the Benin electricity distribution company in charge of Ondo and Edo state Evelyn Gbiwen said the agency through NERC has been working on reforms to improve metering, with initiatives like a centralized payment platform that integrates various payment systems, such as a mobile payments, bank transfers, and POS, to streamline the payment process.
According to her, “Users will be able to access a unified payment gateway for easy transactions, reducing confusion and ensuring that payments are correctly processed. This means that Consumers will benefit from a seamless experience, with immediate payment confirmations and the ability to track payment history. This integration will also help electricity providers reconcile payments more effectively.”
On the unavailability of meters across every household in the country, she said there is an ongoing deployment of smart meters across the country especially in the rural areas to ensure accessibility, effective, accurate and real-time billing.
