Nigeria’s electricity regulator, the Nigerian Electricity Regulatory Commission (NERC), has clarified that not every prepaid meter being installed nationwide is free for customers.
The clarification followed rising public confusion over Federal Government metering programmes and recent warnings that electricity distribution companies (DisCos) and installers must not collect illegal charges from consumers.
Okay News reports that NERC Chairman, Musiliu Oseni, explained the policy during a radio interview on Saturday.
Oseni said meters supplied under the Distribution Sector Recovery Programme (DISREP) are funded by the Federal Government and must be installed for customers at no cost.
He added that consumers who do not want to wait for the DISREP rollout can still get meters through the Meter Asset Provider scheme (MAP), which allows customers to pay for a meter through an approved provider.
“The meter provided by the government is 100 per cent free,” Oseni said, while stressing that DISREP meters are paid for with government-backed funding.
He said DisCos are not allowed to demand any upfront payment from customers for DISREP meters, adding that the cost recovery process does not involve collecting money at installation.
“If you get the free meter, you are not to be paid anything,” he said, noting that customers are expected to cover sector costs through regulated tariffs over time, not through cash payments to officials.
Oseni also warned consumers to be careful about who they pay, saying those choosing the MAP option should pay a registered company rather than an individual.
He said DISREP meters can be identified by markings on the equipment, including the DISREP inscription after the DisCo name.
The NERC chairman said the regulator introduced multiple interventions to reduce Nigeria’s metering gap after finding that DisCos had difficulty accessing bank financing.
He also said customers who previously paid upfront for meters under approved arrangements are entitled to refunds, while those who receive DISREP meters should not expect any cash refund at the point of installation.
The explanation came amid controversy triggered by a Federal Government directive warning DisCos and installers not to collect any payment for meters procured under DISREP.
Nigeria’s Minister of Power, Adebayo Adelabu, issued the warning during an inspection of newly imported smart meters at a port facility in Apapa, Lagos, Nigeria’s commercial hub and home to major seaports.
Adelabu said the meters were procured under a World Bank funded programme, referring to the World Bank, a global development lender, and insisted they must be installed for consumers free of charge regardless of tariff band.
“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge,” Adelabu said, adding that it is an offence for DisCo officials or installers to request money before installation.
Despite the directive, some DisCos have raised concerns about how costs will be recovered over time, including questions around installation expenses and financial sustainability.
The Bureau of Public Enterprises (BPE), a Nigerian government agency involved in reforms and privatisation, later said consumers ultimately pay for sector investments through tariffs.
The Director-General of the BPE, Ayo Gbeleyi, rejected claims that the repayment structure changes the basic model of cost recovery.
“The truth is, every component of investment that goes into the DisCos gets recouped through the tariff structure,” Gbeleyi said, explaining that infrastructure like meters, transformers, and other equipment is recovered through tariff design, not direct cash collection from consumers.
He added that unmetered customers are not expected to make direct payments for DISREP meters, while noting that Nigeria has about 5.9 million customers without prepaid meters.
Oseni also said Nigeria’s President, Bola Ahmed Tinubu, referenced closing the metering gap during his election campaign, and that the DISREP rollout is part of the effort.
He added that a separate presidential metering initiative is also in progress, with procurement still ongoing under the Office of the Special Adviser to the President on Energy.
Since the free meter initiative was announced, many customers have asked why some meter options still involve payment, but NERC said the difference depends on whether the meter is funded under DISREP or obtained through the MAP route.
