Nigeria’s power distribution companies (DisCos) are pushing back against a recent federal mandate requiring prepaid meters to be provided to all customers at no cost. The tension follows a direct order from the Minister of Power, Adebayo Adelabu, who recently declared that every electricity user, regardless of their service band, is entitled to a free meter.
Several DisCo operators have dismissed the Minister’s directive as a “political statement” that fails to account for the practical and financial realities of the sector. The operators expressed concern that the government did not consult key stakeholders specifically the meter providers and independent installers before making the public announcement. A major point of contention is the cost of installation; since many installers are not direct employees of the DisCos, the companies are questioning who will be responsible for their service fees if the customers are banned from paying.
The controversy ignited on Thursday when the Federal Government officially prohibited both DisCos and third-party installers from accepting any form of payment for meters. Minister Adelabu issued the warning during an inspection of a new shipment of smart meters at APM Terminals in Apapa, Lagos. He made it clear that these meters, procured through the World Bank-funded Distribution Sector Recovery Programme (DISREP), are strictly intended for free distribution. He further warned that any official caught extorting consumers would face criminal prosecution.
“It is an illegality for any official to request even a dime,” the Minister stressed during his visit. He explained that the goal of the free rollout is to eliminate estimated billing and improve the overall liquidity of the power sector by ensuring everyone is accurately metered.
However, industry insiders argue that the move could unintentionally jeopardize existing frameworks like the Meter Asset Provider (MAP) scheme. Under the MAP system, customers typically pay for their meters upfront and receive a refund via energy credits over time. With the Minister now promising free meters for everyone, there are fears that the existing supply chain could stall as consumers wait for government-funded units that may not arrive quickly enough to meet the massive demand.
While the government remains firm on its “pay no kobo” policy, the DisCos are calling for a more structured dialogue. They insist that for a free metering plan to truly work, the government must provide a clear funding roadmap that covers not just the equipment, but the technical labor required to get them into homes across the country.
