Nigeria’s electricity distribution companies (DisCos) have formally rejected the Federal Government’s recent announcement that smart prepaid meters must be provided and installed free of charge for all electricity consumers, sparking industry concerns over funding, cost recovery and implementation clarity.
The directive came from Minister of Power Adebayo Adelabu, who, during an inspection of newly imported smart meters, declared that no customer should pay for meters or installation — labeling any demand for payment by DisCos or installers as illegal and punishable. The rollout is part of the World Bank–funded Distribution Sector Recovery Programme, which aims to distribute about 3.4 million meters nationwide.
However, senior sources within several DisCos have described the minister’s pronouncement as unrealistic and inadequately thought-through, cautioning that it fails to address the practical costs and logistics of the programme.
Cost Burden and Installation Gap
DisCo officials told journalists that despite the rhetoric of “free meters,” the cost of the meters themselves — along with installation fees — ultimately still needs to be borne by someone. According to operators, the current understanding is that DisCos would be expected to pay for the meters over a period of about ten years.
“Meter installers are not employees of the DisCos. Someone has to pay them if consumers don’t,” one DisCo source stated, stressing that the government’s announcement did not clarify who would foot the actual bill for installation and logistics.
Risk to Meter Asset Provider (MAP) Scheme
Another key concern raised by DisCos is the potential threat to the Meter Asset Provider (MAP) scheme — a long-running initiative where private meter providers install meters and recover costs through energy credits over time.
Operators warned that customers may now abandon the MAP option altogether, having been told that meters are free, which could undermine a market-driven approach to closing Nigeria’s metering gap.
DisCos have called on the Federal Government and the Nigerian Electricity Regulatory Commission (NERC) to engage stakeholders promptly to clarify who pays for what and to lay out which groups of customers are truly eligible for the free meters so as to prevent confusion and protect existing schemes.
Call for Transparency and Cost-Recovery Framework
Stakeholders emphasised that while the goal of metering all customers is commendable, cost recovery, financial viability, and implementation details cannot be overlooked. Questions remain on whether the Federal Government will subsidise the programme, how the costs will be reflected in tariffs, and how installers will be compensated.
As the debate continues, industry players urge urgent consultations between DisCos, government ministries, regulators and meter manufacturers to iron out a workable plan that balances social objectives with financial realities.