Power distribution companies have raised concerns over the federal directive mandating free prepaid meters nationwide. Operators argue the policy ignores stakeholder consultations and practical installation costs within Nigeria’s power sector. According to DisCo officials, the Minister of Power issued a politically motivated directive without industry-wide engagement.
They believe installers, meter providers, and distributors were excluded from critical policy discussions. Recently, the Federal Government banned electricity companies from charging customers for prepaid meters. The directive also warned that offenders would face prosecution for extortion-related practices. During a Lagos inspection, the minister stated meters would be installed free for all consumers.
He emphasized that no official or installer should request payment under any circumstance. However, DisCo operators insist the meters are not genuinely free. They explained the companies would repay meter costs over a ten-year period. Industry sources said forcing DisCos to absorb capital expenditure without tariff adjustments threatens financial sustainability.
They warned unpaid costs could damage balance sheets and worsen sector debts. Operators also noted installers are independent contractors, not DisCo employees. Therefore, someone must pay installers for labor and logistics. Stakeholders fear the directive could disrupt the Meter Asset Providers scheme. Many customers now reject MAP meters, believing free alternatives are guaranteed.
Operators clarified free meters cannot cover Nigeria’s massive metering deficit. They urged the government to clearly outline eligible areas and customer categories. Experts stressed that cost recovery remains essential for private sector participation.
They cautioned that unrealistic promises could escalate consumer frustration nationwide. DisCos urged transparency to prevent misinformation and rising customer disputes. They called for collaborative policymaking to protect investments and ensure long-term power stability.
