By Muhammed Abubakar, Reporting
ELECTRICITY distribution companies (DisCos) have voiced significant opposition to a directive from the Minister of Power, Adebayo Adelabu, mandating that prepaid meters be provided and installed free of charge for all consumers.
The Federal Government issued the order on Thursday, prohibiting DisCos and their contractors from charging customers for meters.
The government warned that any official found demanding payment would face prosecution.
Minister Adelabu announced the policy during an inspection of newly imported smart meters at APM Terminals in Apapa, Lagos.
The meters were procured under the World Bank-funded Distribution Sector Recovery Programme.
He insisted that installations must be free across all consumer categories, stating that any request for payment would be considered an offence.
However, industry operators have labelled the pronouncement as “unrealistic and largely political.” They argue that the cost of these so-called free meters would ultimately fall on a party—most likely the DisCos themselves—and be amortised over an estimated 10-year period.
Senior sources within the sector raised several practical concerns.
They noted that meter installation is typically carried out by independent third-party providers, not direct employees of the DisCos, questioning who would cover these labour costs if customers are barred from paying.
A primary concern is the financial impact on the DisCos. Industry figures warned that forcing companies to absorb the capital expenditure of mass meter deployment without a clear cost-recovery mechanism, such as through tariff adjustments, would severely damage their already precarious finances.
The DisCos also cautioned that the blanket “free meters” declaration risks undermining the existing Meter Asset Provider (MAP) scheme. Under the MAP framework, customers can purchase a meter and be reimbursed via energy credits over time. Operators report that many customers are now refusing this option, anticipating free government-provided meters instead.
Furthermore, DisCos stressed that the current shipment of imported meters is insufficient to close the nation’s vast metering gap. They urged the government to clearly identify the specific categories and locations of intended beneficiaries, rather than issuing broad statements that could mislead the public.
The companies have called on the Federal Government and the Nigerian Electricity Regulatory Commission (NERC) to initiate urgent talks with all stakeholders, including DisCos, meter manufacturers, and installers. The goal, they say, should be to design a sustainable, transparent framework that ensures proper funding and cost recovery while protecting consumers.
While acknowledging the commendable aim of relieving consumers of upfront costs, sector operators insist the government must explicitly outline who will bear the financial burden and how it will be recouped. They warn that ambiguous directives could trigger disputes, erode investor confidence, and add further strain to Nigeria’s challenged power sector.
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