Electricity distribution companies (DisCos) have raised concerns over the Federal Government’s directive that prepaid electricity meters be provided to all customers free of charge.
The directive, issued by the Minister of Power, Adebayo Adelabu, came during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, on Thursday. The minister stated that meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed at no cost to consumers, warning that any attempts by DisCo staff or installers to collect payments would be treated as a prosecutable offence.
“I want to emphasise that these meters are to be installed and distributed free of charge—free of charge! No official or installer should request any payment. It is an offence,” Adelabu said. He added that the initiative aims to improve billing and collections across the sector.
However, operators have questioned the feasibility of the plan, pointing out that the so-called “free” meters will ultimately be financed by the DisCos over a ten-year period. Speaking anonymously due to the sensitivity of the matter, the operators said the government had not considered the implications for installers and meter providers.
“Someone has to pay for the meters and their installation. The government expects DisCos to bear the cost over ten years. This is classified as capital expenditure, and if not factored into tariffs, it could undermine the financial stability of the companies,” a senior official explained.
Another operator highlighted the separation of responsibilities in the sector. “Meter installers are not DisCo employees. The minister says consumers should not pay, but then who is to pay the installers? This role was removed from DisCos during Babatunde Fashola’s tenure as power minister. If the government can pay the installers, that is acceptable—but we doubt any DisCo will volunteer to cover these costs.”
The operators also warned that the announcement could undermine the ongoing Meter Asset Providers (MAP) scheme, which allows consumers to purchase meters directly from providers. “People are now rejecting the MAP scheme because they believe meters are free. The government should clarify which areas and customer categories qualify for free meters. Otherwise, local meter suppliers and the MAP scheme could be severely impacted,” one source said.
Industry stakeholders stressed the importance of cost recovery in any policy. “The government must account for who bears the cost. Every investment has to be recoverable. Otherwise, it will put undue pressure on the sector and risk cutting corners,” another operator added.
DisCos urged the government to communicate clearly with consumers to avoid confusion and rising tension. “The minister’s statement has already caused agitation among customers. Transparency is key to ensuring both the public and operators understand the scheme,” an official said.
As the debate continues, the sector awaits further clarification on the funding and implementation framework of the free meter initiative.
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