By Our Reporter
A fresh standoff has erupted in Nigeria’s power sector following the Federal Government’s directive that prepaid electricity meters must be supplied and installed free of charge for consumers nationwide. While the policy is presented as a relief for millions suffering from estimated billing, electricity distribution companies (DisCos) argue that the so-called “free” meters will ultimately be paid for by consumers through higher tariffs, exposing a major contradiction at the heart of the reform.
The initiative, backed by a World Bank loan under the Distribution Sector Recovery Programme (DISREP) and funds from the Federation Account, aims to address Nigeria’s estimated seven million metering deficit. Minister of Power, Adebayo Adelabu, has insisted that neither meters nor installation should attract any charge, warning of severe sanctions for any DisCo official or installer who demands payment. According to him, the policy aims to restore transparency and enhance revenue collection in the sector.
DisCos, however, have rejected the directive, describing it as a political announcement lacking operational clarity. They maintain that while customers are not paying upfront, the cost of the meters is classified as an investment to be recovered over about 10 years through electricity tariffs—meaning consumers still pay, just indirectly. The companies say there is no clear framework on who bears the immediate cost of procurement and installation, particularly the latter.
The contradictions have stalled implementation. Although about one million meters are reportedly available, only around 150,000 have been installed in recent months. Government officials blame DisCos for inefficiency, while DisCos cite logistical hurdles and poor customer data. In the meantime, an estimated 2.5 million meters risk sitting idle as both sides trade blame.
Practical issues have further undermined the programme. Meter installers allegedly earn as little as ₦3,000 per installation, a situation that discourages deployment and fuels illegal charges to customers—despite government warnings. At the same time, the Meter Asset Provider (MAP) scheme, which allows customers to pay upfront and recover costs via energy credits, is collapsing as many consumers now reject it under the assumption that all meters should be free.
As the Federal Government holds its ground and DisCos demand a financially sustainable model, stakeholders and civil society groups are calling for transparent communication and independent monitoring. Until the contradictions between “free” meters and tariff-based repayment are resolved, Nigeria’s metering crisis—and public distrust—appears set to deepen rather than end.