The Nigerian Electricity Regulatory Commission (NERC) has clarified that not all electricity meters currently being installed nationwide are free, amid confusion surrounding the Federal Government’s metering initiatives and warnings against illegal charges by electricity distribution companies (DisCos).
The Chairman of NERC, Musiliu Oseni, made the clarification during a radio interview where he explained that only meters provided under government-funded programmes are free at the point of installation, while other lawful options still require customer payment.
According to Oseni, meters supplied under the World Bank–funded Distribution Sector Recovery Programme (DISREP) are fully financed by the Federal Government and must be installed for customers at no cost.
“The meter provided by the government is 100 per cent free. The DISREP meter is free because it is paid for by the government,” Oseni said.
He explained that although DisCos would eventually repay the funding through a low-interest loan structure, customers would not be billed separately for the meters.
“Through the tariff, DisCos are not going to charge customers because of the meter. They are to provide it free of charge to the customers… and it is 100 per cent free,” he added.
Oseni stressed that DisCos are prohibited from collecting any payment from customers for meters installed under DISREP, noting that cost recovery does not involve upfront charges.
“If you get the free meter, you are not to be paid anything. No DisCo is allowed to collect money from customers because of a DISREP meter,” he stated.
However, the NERC chairman clarified that the Meter Asset Provider (MAP) scheme remains operational for customers who are unable or unwilling to wait for the government-funded rollout.
“Those residing in an area where it will take time before the free installation gets to them, and they cannot wait, can decide to pay for a Meter Asset Provider. But they must ensure that they pay into a company, not an individual,” Oseni said.
He urged consumers to be vigilant and verify the type of meter being installed, noting that DISREP meters can be easily identified.
“If you look at the free meters carefully, there is an inscription. After the name of the DisCo, you will see ‘DISREP’,” he explained.
Oseni said NERC introduced multiple initiatives to close Nigeria’s metering gap after discovering that DisCos were struggling to access financing from banks.
“When we evaluated the financing, we realised that it would be difficult for them to attract financing. That was why we came up with some of these initiatives,” he said.
He also disclosed that customers who previously paid upfront for meters under approved schemes are entitled to refunds.
“If you pay for your meter upfront, you are meant to get refunded,” Oseni added.
The clarification follows recent controversy sparked by the Federal Government’s directive banning DisCos and installers from collecting payments for meters.
The Minister of Power, Adebayo Adelabu, issued the warning during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, stating that the meters must be installed free of charge, regardless of tariff band.
“Nobody should collect money from any consumer. It is an offence for officials of distribution companies to request a dime before installation,” Adelabu said.
Despite the directive, some DisCos raised concerns over cost recovery and financial sustainability, arguing that the policy was politically driven and lacked adequate stakeholder consultation.
The Bureau of Public Enterprises (BPE) later clarified that while customers would not pay directly for meters, the cost would ultimately be recovered through electricity tariffs.
Reacting to claims that DisCos would repay meter costs over 10 years, BPE Director-General, Ayo Gbeleyi, dismissed the narrative as misleading.
“Every component of investment that goes into the DisCos gets recouped through the tariff structure… whether it is a transformer or a meter, consumers will ultimately pay through the tariff design,” Gbeleyi said.
He added that unmetered customers — estimated at about 5.9 million nationwide — were not expected to make direct payments for prepaid meters.
Oseni further revealed that beyond DISREP, a presidential metering initiative is underway, with procurement still ongoing under the Office of the Special Adviser to the President on Energy.
The NERC chairman said the programme aligns with President Bola Tinubu’s campaign promise to close Nigeria’s metering gap, noting that DISREP marks the first phase of implementation.
