Mixed Reactions Greet FG Directive on Free Prepaid Electricity Meters
The Federal Government’s directive mandating the nationwide rollout of free prepaid electricity meters has drawn mixed reactions from experts, power sector operators and electricity Distribution Companies (DisCos).
Stakeholders shared their views in separate interviews with newsmen on Sunday in Lagos.
NAN reports that the Minister of Power, Mr Adebayo Adelabu, on Jan. 26 directed all DisCos to provide prepaid electricity meters free of charge to customers across all tariff bands.
An energy expert, Dr Olukayode Akinrolabu, described the initiative as a critical step toward promoting 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, stressing that all postpaid customers should be seamlessly integrated into the Federal Government’s metering rollout.
According to him, the process must be deliberate, comprehensive and timely to achieve its intended objectives.
He explained that funding for the rollout was anchored on the N28 billion Meter Acquisition Fund (MAF), supported by private sector participation through the Meter Asset Provider (MAP) model.
However, Akinrolabu cautioned that the proposed implementation timeline appeared ambitious, given the operational and financial challenges facing DisCos.
He noted that successful execution would require significant capacity building, logistics support and strong strategic partnerships.
“To ensure accountability, regulators have introduced milestone-based disbursements, system integration requirements and penalties for delays,” he said.
Akinrolabu added that the Nigerian Electricity Regulatory Commission (NERC) had directed DisCos to integrate their systems with the fund manager’s IT infrastructure and complete Know-Your-Customer (KYC) processes.
He further stressed that sanctions should be imposed on DisCos where installation delays result from poor network readiness or inaccurate customer data.
According to him, inaccurate customer demographic information—often linked to energy theft and collusion involving some DisCo staff—remains a major obstacle to effective implementation.
Akinrolabu noted that the N28 billion allocated under the MAF Tranche B scheme would be disbursed strictly for meter procurement and installation.
Recalling previous interventions, he said the MAP programme and the National Mass Metering Programme (NMMP) were designed to ease the financial burden of metering on electricity consumers.
“I am strongly convinced that this initiative is a step in the right direction. However, structural reforms, particularly in logistics and manpower, are essential for its success,” he said.
He disclosed that NERC had also directed DisCos to appoint credible Meter Asset Providers with ready-to-deploy inventory and a minimum of 30 per cent local content compliance, adding that MAPs were responsible for addressing manpower gaps in meter installation.
Meanwhile, the Ibadan Electricity Distribution Company Plc (IBEDC) expressed strong support for the Federal Government’s free metering initiatives.
Mrs Angela Olanrewaju, Coordinating Head, Corporate Services at IBEDC, said the company aligned with all efforts aimed at expanding meter access and closing its nearly 40 per cent metering gap.
She said the Federal Government had facilitated several free metering schemes, including 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 against paying installers or company staff, noting that beneficiaries incur no costs under the schemes.
Olanrewaju explained that customers on tariff Bands C to E who were unwilling to wait for the free schemes could opt for the MAP programme, under which they pay upfront and are refunded through energy credits over time.
She reiterated that increased metering across all tariff bands was essential for service improvement, accurate billing and a more efficient electricity market.
According to her, about 102,000 smart meters have been allocated to IBEDC under the MAF and DISREP schemes since April 2025 and are currently being deployed.
She also clarified that customers do not need to apply or register, as meter deployment is carried out systematically.
However, some DisCo officials, who spoke on condition of anonymity, expressed reservations about the directive mandating free meters for all customer categories.
They argued that the policy did not adequately address the concerns of installers and meter providers, noting that the cost of the “free” meters would ultimately be borne 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 reflected in tariffs. Otherwise, it could weaken their balance sheets,” one official said.
Another operator described the directive as populist, adding that uncertainty remained over who would bear the cost of installation if government funding was not clearly defined.
