Mixed reactions trail FG directive on free prepaid electricity meters

Experts, power sector operators and electricity Distribution Companies (DisCos) have expressed divergent views on the Federal Government’s directive mandating the rollout of free prepaid meters to electricity consumers nationwide.

They said this while reacting to the directive in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.

NAN reports that the Minister of Power, Adebayo Adelabu, on Jan. 26 directed all electricity DisCos to provide prepaid meters free of charge to customers across all tariff bands.

An energy expert, Olukayode Akinrolabu, said the initiative was a critical step toward transparency, fairness and trust in the electricity sector.

Akinrolabu, who chairs the Customer Consultative Forum for Festac and Satellite Town, urged DisCos to move beyond delays and excuses.

According to him, they can integrate all postpaid customers into the Federal Government’s metering rollout without hesitation and the process must be deliberate, comprehensive and timely.

He said funding for the rollout was anchored on the N28 billion Meter Acquisition Fund (MAF), complemented by private sector participation through the Meter Asset Provider (MAP) model.

Akinrolabu, however, cautioned that given the operational and financial challenges confronting DisCos, the implementation timeline appeared ambitious.

This, stressed, would require significant capacity building, logistics support and strategic partnerships.

“To guarantee accountability, regulators have introduced milestone-based disbursements, system integration requirements, and penalties for delays,” he said.

He added that the Nigerian Electricity Regulatory Commission (NERC) had mandated DisCos to integrate their systems with the fund manager’s IT infrastructure and complete Know-Your-Customer (KYC) procedures.

Akinrolabu further emphasised that sanctions should be imposed on DisCos for installation delays arising from poor network readiness or inaccurate customer data.

He identified inaccurate customer demographic information, often linked to energy theft and collusion with some DisCo staff, as a major impediment to effective implementation.

According to him, the N28 billion allocated under the MAF Tranche B scheme would be disbursed strictly for meter procurement and installation.

Recalling past interventions, Akinrolabu said the Meter Asset Provider (MAP) programme and the National Mass Metering Programme (NMMP) were Federal Government initiatives designed to reduce the financial burden of metering on consumers.

“I am strongly convinced that this initiative is a step in the right direction.

“The structural reforms, particularly in logistics and manpower, are essential for success,” the expert said.

Akinrolabu disclosed that NERC had directed DisCos to appoint credible Meter Asset Providers with ready-to-deploy inventory and at least 30 per cent local content compliances.

He noted that MAPs were also responsible for addressing manpower gaps in meter installation.

Meanwhile, the Ibadan Electricity Distribution Company Plc (IBEDC) has expressed strong support for the Federal Government’s free metering initiatives.

Angela Olanrewaju, Coordinating Head, Corporate Services, IBEDC, said the company aligned with all efforts aimed at expanding meter access and reducing its nearly 40 per cent metering gap.

According to her, the Federal Government has facilitated several free metering schemes which include the NERC-backed Meter Acquisition Fund and the World Bank-supported Distribution Sector Recovery Programme (DISREP).

“For both schemes, the meters and installation are completely free,” Olanrewaju said.

She added that IBEDC consistently sensitises customers not to pay installers or company staff, as the process incurs no cost to beneficiaries.

Olanrewaju noted that customers on Bands C to E, who were unwilling to wait for the free schemes, could opt for the MAP programme.

Under the programme, She noted that customers would have to pay upfront and would be refunded through energy credits over time.

She reiterated that increased metering across all bands was essential for service improvement, accurate billing and a more efficient electricity market.

Olanrewaju disclosed that since April 2025, about 102,000 smart meters had been allocated to IBEDC under the MAF and DISREP schemes and were currently being deployed.

She clarified that customers do not need to apply or register for the schemes, as deployment is carried out systematically.

However, some DisCo officials, who spoke anonymously, expressed reservations about the minister’s directive mandating free meters for all customer categories.

They argued that the policy did not adequately consider the concerns of installers and meter providers.

The officials added that the so-called “free” meters would still be paid for by DisCos over a period of up to 10 years.

“Someone must pay for installation. If DisCos are required to fund capital expenditure, it must be recognised as allowable capex and factored into tariffs.

“Otherwise, it could cripple their balance sheets,” one official said.

Another operator described the directive as a populist move.

“If the government can pay installers, there will be no issue. Otherwise, it remains unclear who will shoulder that responsibility,” another official added.

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