The Federal Government’s directive to provide prepaid meters free of charge to all electricity customers has been met with strong resistance from power distribution companies, who warn the policy is financially unsustainable without clear cost recovery plans. Operators argue the pronouncement by the Minister of Power, Adebayo Adelabu, overlooks critical funding and logistical realities, threatening existing meter procurement schemes.
Minister Adelabu, during an inspection of newly imported smart meters in Lagos on Thursday, mandated that the devices, procured under a World Bank-funded program, be installed without any payment from consumers. He stated that any official or installer found collecting money would be prosecuted, emphasizing that the initiative aimed to improve billing and revenue collection across the sector.
However, distribution company officials, speaking anonymously due to the sensitivity of the issue, countered that the meters are not truly free. They explained that DisCos are obligated to pay for the meters over a ten-year period, and the directive does not address who will cover installation costs. This, they claim, imposes an unfunded burden on their operations.
The controversy arises within a long-standing context of Nigeria’s metering gap, where millions of customers remain without meters. Previous government efforts included the Meter Asset Provider (MAP) scheme, which allows customers to purchase meters upfront or through installment plans reimbursed via energy credits. The new free meter initiative runs parallel to this existing framework.
Industry sources trace part of the current conflict to past policy shifts that removed direct metering responsibilities from DisCos. Operators now highlight a disconnect between policy announcements and on-ground implementation, where third-party installers, not DisCo staff, carry out the physical meter installations.
According to operators, the minister’s blanket declaration jeopardizes the MAP scheme. “People are now rejecting the MAP scheme because they have heard that meters are free,” one DisCo source stated. They urged the government to clarify that the free meters are limited and cannot cover all customers immediately, to prevent the collapse of the private meter supply ecosystem.
Another official questioned the funding model, stating, “If he says meter installers should not be paid, who’s going to pay them? The DisCos or the Ministry of Power?” The source stressed that every business expenditure requires cost recovery, which the current directive ignores. A third operator described the announcement as a “populist statement” made without consulting key stakeholders on feasibility.
The unfolding dispute sets the stage for potential tensions between DisCos, regulators, and consumers, who may now refuse to engage with existing meter acquisition channels. The resolution likely hinges on the government clarifying the funding and scope of the free meter program to address the financial concerns raised by the distribution companies.
