Nigeria’s power distribution companies have rejected the Federal Government’s plan to roll out electricity meters to Nigerians at no cost, warning that the initiative raises unresolved financial and operational concerns across the sector.
The disagreement follows recent assurances by the Minister of Power that prepaid meters, particularly smart meters procured under ongoing reform programmes, would be supplied and installed free of charge, with consumers barred from making any payments.
The government also cautioned that any official found demanding money from electricity users would face sanctions.
However, operators under the Association of Nigerian Electricity Distribution Companies argue that the policy, as currently framed, shifts the financial burden entirely to DisCos without a clear reimbursement structure.
According to industry representatives, meter procurement, logistics, installation, and maintenance all involve high costs that cannot simply be absorbed without undermining already fragile balance sheets.
DisCos further contend that the public messaging around “free meters” creates confusion within the market, particularly given the existence of other metering frameworks, including privately financed arrangements that allow customers to pay upfront and recover costs over time.
They insist that without clarity on how installers will be paid and how investments will be recouped, the policy risks stalling metering progress rather than accelerating it.
Moreover, operators have expressed concern that installers are often independent service providers rather than direct DisCo employees, making it impractical to mandate free installation without identifying a funding source.
They also warn that poor coordination could disrupt existing supply chains and contractual obligations.
Despite the pushback, the Federal Government maintains that the initiative is designed to close Nigeria’s metering gap, protect consumers from estimated billing, and restore confidence in the electricity market.
Officials argue that improved metering will ultimately strengthen revenue assurance and reduce disputes between customers and service providers.
As discussions continue, sector analysts note that the standoff highlights broader tensions within Nigeria’s power reforms, where consumer protection goals must be balanced against the commercial realities of distribution companies.
AFRIPOST reports that for now, the success of the free meter plan appears to hinge on whether both sides can agree on a transparent and sustainable funding model.