By Micah Jonah
January 26, 2026
Electricity distribution companies (DisCos) have expressed concerns over the Federal Government’s directive that prepaid meters be provided free to all customers. The companies argue that the policy, announced by the Minister of Power, Adebayo Adelabu, does not consider key stakeholders, including meter providers and installers.
Adelabu, during an inspection of newly imported smart meters at APM Terminals in Apapa, Lagos, warned that DisCo officials or installers found charging customers for the meters would face prosecution. He explained that the meters, procured under the World Bank-funded Distribution Sector Recovery Programme, must be installed at no cost to consumers.
“I want to emphasize that these meters are to be installed free of charge. Nobody should collect money from any consumer. It is an offence,” the Minister said.
However, DisCo operators told The PUNCH that the government’s “free meter” promise does not relieve the companies from financial responsibility. They argued that the DisCos would still have to pay for the meters over a 10-year period, raising questions about who will cover the cost of installation since meter installers are not DisCo staff.
“The government expects the DisCos to bear the cost of installation. If installers are not paid by the consumers, someone has to pay them. The directive seems politically motivated without full consideration of cost recovery or operational realities,” said one operator.
Stakeholders warned that the “free meter” announcement could undermine the Meter Asset Providers (MAP) scheme, which allows individuals to purchase meters directly. They said the public may now reject MAP, assuming all meters are free, and urged the government to clarify which categories of customers qualify.
Operators emphasized the need for transparency and cost recovery, noting that every expenditure must be accounted for to ensure sustainable operations. “The Minister’s comments are populist. If the government does not clarify who will bear the cost, local meter suppliers and ongoing schemes like MAP could suffer,” one source said.
DisCos called on the government to manage public expectations carefully to prevent confusion and disputes with customers over meter installations.
