Electricity distribution companies (DisCos) have rejected the Federal Government’s directive mandating the free installation of prepaid electricity meters for all customers, describing the policy as unrealistic and politically motivated.
The power firms faulted the announcement by the Minister of Power, Adebayo Adelabu, insisting that the cost of meters and their installation cannot simply be wished away without a clear funding and cost-recovery framework.
Adelabu had on Thursday warned DisCos and meter installers against collecting any payment from consumers, stating that meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed free of charge across all customer categories.
He issued the warning during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, stressing that any demand for money would amount to an offence punishable by law.
However, DisCo operators, who spoke anonymously due to the sensitivity of the issue, said the meters described as free would still be paid for by the DisCos over a 10-year period, arguing that the government was merely shifting the financial burden to already struggling operators.
According to them, meter installers are independent contractors and not staff of the DisCos, raising concerns over who would bear the cost of installation if consumers are barred from paying.
The operators warned that forcing DisCos to absorb the cost without reflecting it in electricity tariffs would worsen their financial position and make their balance sheets unsustainable.
They also accused the minister of failing to consult key stakeholders, including DisCos, meter manufacturers and installers, before making the announcement.
The companies further cautioned that the policy could cripple the Meter Asset Providers (MAP) scheme, which allows customers to purchase meters directly and recoup costs through energy credits.
According to the operators, many customers have already begun rejecting the MAP option following the minister’s statement, believing that free meters will be made available to everyone.
They warned that the free-meter declaration could mislead the public, as the available meters are insufficient to cover Nigeria’s metering gap, and urged the government to clearly outline the categories and locations eligible for the free installations.
The DisCos called on the Federal Government and electricity regulator to prioritise transparency, stakeholder engagement and cost recovery, warning that failure to do so could deepen tensions in the power sector and further agitate consumers.
