Electricity distribution companies (DisCos) may ignore the Federal Government’s directive that prepaid meters should be given to electricity consumers free of charge, raising fears that Nigerians could still be forced to pay for meters.
Operators in the power distribution sector have openly questioned the order issued by the Minister of Power, Adebayo Adelabu, insisting that the decision did not take into account the cost of meters, installation and the role of private installers.
Last Thursday, the Federal Government banned DisCos and meter installers from collecting any form of payment from customers, warning that officials caught demanding money would be prosecuted. Adelabu gave the order during an inspection of newly imported smart meters at APM Terminals in Apapa, Lagos.
According to the minister, the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed free for all electricity customers, regardless of their tariff band.
“Nobody should collect money from any consumer. It is an offence for DisCo officials or installers to request a dime before installation,” Adelabu said, adding that free meters would improve billing and revenue collection.
However, DisCo operators who spoke on the issue said the declaration was unrealistic and may not work in practice. They argued that although the meters are described as free, someone must still pay for them and for their installation.
According to the operators, the Federal Government expects DisCos to pay for the meters over a period of 10 years, a move they described as unfair and financially dangerous.
“Those meters are not free. Someone has to pay for them. The government is asking DisCos to bear the cost, and that will affect their finances,” one DisCo official said.
The operators explained that meter installers are private companies and not staff of the DisCos, raising the question of who would pay them if customers are barred from making payments.
“Installers are already asking who will pay them if consumers don’t pay. The DisCos are not the ones installing meters. That responsibility was taken away from us years ago,” another operator said.
They warned that if DisCos are forced to absorb the cost without proper tariff adjustments, it could lead to financial strain and corner-cutting in the sector.
The operators also described the minister’s statement as political, saying it failed to address cost recovery, which is critical in the power sector.
“You cannot run the power sector on emotions or promises. Every cost must be recovered. If you don’t plan for cost recovery, debts will pile up,” one source said.
DisCos further warned that the minister’s announcement could damage the Meter Asset Providers (MAP) scheme, which allows customers to buy meters directly and recover the cost through energy credits.
“People are already rejecting the MAP scheme because they believe meters are now free. The truth is that the free meters cannot cover everyone,” an operator explained.
According to them, the meters being imported will be released in batches and are not enough to close the country’s metering gap. They urged the government to clearly state which customers will benefit from free meters and allow others to continue using the MAP scheme.
The operators cautioned that the current confusion has already led to tension between customers and DisCos, as many consumers now insist on free meters.
They called on the Federal Government and the electricity regulator to engage all stakeholders and clearly explain how the policy will be funded, warning that without a clear payment plan, Nigerians may still end up paying for meters despite official assurances.
