Power distribution companies (DisCos) in Nigeria have opposed the federal government’s directive to provide prepaid electricity meters free of charge, citing significant financial risks and a lack of consultation with stakeholders.
Minister of Power Adebayo Adelabu announced the policy, insisting that meters must be distributed and installed at no cost to consumers, warning that any fee collection would be illegal and prosecutable.
The announcement was made on Thursday during an inspection of imported smart meters at APM Terminals in Apapa, Lagos, as part of the World Bank-funded Distribution Sector Recovery Programme.
However, on Monday, DisCos argued that the plan forces them to cover costs over a 10-year period without guaranteed mechanisms for recovery, a situation that could lead to unsustainable debts and threaten their financial stability.
They also highlighted the absence of prior engagement with meter installers, who operate independently of DisCos, and described the directive as unrealistic and populist.
One DisCo operator said: “Those meters you see, someone has to pay for them, and the government expects the DisCos to bear the cost of the so-called free meters. They said DisCos can pay it over 10 years.”
“We need to know that meter installers are not staff of the DisCos. They are already asking who will pay them if consumers do not pay. Did the minister consider all those factors?” another added.
According to them, the policy has also disrupted the Meter Asset Provider scheme, with many customers refusing to pay for installations in anticipation of free meters, despite insufficient stock to meet nationwide demand.
“People are now rejecting the Meter Asset Provider scheme because they have heard that meters are free. The minister came up with a very wrong narrative,” a DisCo source noted.
DisCos are now calling for urgent clarification on funding, eligibility criteria, and cost recovery mechanisms to avoid further operational challenges and growing tension in the electricity sector.
