Nigeria’s electricity regulator has moved to clear growing public confusion over the cost of prepaid electricity meters, stressing that not all electricity meters currently being installed across the country are free, despite recent government warnings against illegal charges by distribution companies.
The clarification came from the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, who addressed the issue during a radio interview amid widespread debate triggered by the Federal Government’s metering drive and enforcement actions against electricity distribution companies (DisCos).
Oseni explained that while some meters are fully funded by the government and installed at no cost to consumers, other legitimate payment options still exist under approved regulatory frameworks.
Free electricity meters in Nigeria: what customers need to know
At the heart of the confusion surrounding free electricity meters in Nigeria is the existence of multiple metering schemes operating simultaneously.
According to NERC, meters deployed under the Distribution Sector Recovery Programme (DISREP) are completely free at the point of installation.
These meters are procured using funds provided by the Federal Government, largely supported through international financing arrangements.
“The DISREP meter is 100 per cent free because it is paid for by the government,” Oseni said.
“Distribution companies are not allowed to collect a single naira from customers for these meters.”
He emphasised that DisCos are prohibited from charging installation fees, mobilisation costs, or any form of indirect payment for DISREP meters. Any such demand, he said, amounts to a regulatory breach.
Although the government will recover the cost of these meters over time through electricity tariffs, Oseni stressed that customers are not required to make upfront payments, nor are they billed separately for the meters.
Why some electricity meters still cost money
Despite the rollout of free electricity meters in Nigeria, Oseni clarified that the Meter Asset Provider (MAP) scheme remains operational and legally valid.
The MAP framework allows customers who are unwilling or unable to wait for government-funded meter deployment to purchase meters directly from approved providers.
“Some customers live in areas where free meter rollout may take time,” Oseni explained. “If they cannot wait, they are allowed to opt for the Meter Asset Provider scheme.”
However, he warned that payments must be made only to licensed companies, not individuals or informal installers, to avoid fraud.
Under the MAP arrangement, customers who pay upfront for meters are entitled to refunds through energy credits over time, in line with existing NERC regulations.
How to identify government-funded meters
To protect consumers from illegal charges, NERC advised electricity users to verify the source of any meter presented for installation.
Oseni explained that government-funded meters are clearly labelled.
“If you look closely at the free meters, you will see an inscription. After the name of the DisCo, you will find the word ‘DISREP’,” he said.
This marking, he noted, helps customers distinguish between free electricity meters in Nigeria and meters supplied under paid arrangements.
Consumers were urged to report any attempt by DisCo staff or third-party installers to demand payment for DISREP meters.
Government crackdown on illegal meter charges
The clarification follows a recent directive by the Minister of Power, Adebayo Adelabu, who warned DisCos and installers against collecting fees for meters funded under government programmes.
During an inspection of newly imported smart meters at APM Terminals in Lagos, the minister described any form of payment demand as illegal.
“Nobody should collect money from any consumer,” Adelabu said. “It is an offence for officials of distribution companies or their installers to request a dime.”
The meters inspected were procured under the World Bank–supported DISREP initiative and are intended to reduce Nigeria’s persistent metering gap.
DisCos raise sustainability concerns
Despite the government’s stance, electricity distribution companies have raised concerns over the long-term financial implications of free meter deployment.
Some operators argue that while customers may not pay upfront, DisCos will still bear installation and operational costs before recouping investments through tariffs.
Industry insiders, speaking anonymously, claimed the policy was introduced with limited stakeholder consultation and warned it could strain already fragile balance sheets.
However, the Bureau of Public Enterprises (BPE) countered these claims, stating that meter investments—like transformers and feeders—are routinely recovered through tariff structures.
Consumers ultimately pay, but not upfront
BPE Director-General Ayo Gbeleyi explained that electricity infrastructure costs are embedded within tariff calculations approved by regulators.
“Whether it is a transformer, feeder pillar or meter, consumers will ultimately pay through tariffs,” Gbeleyi said. “But they are not expected to make direct payments for meters.”
He dismissed claims that DisCos were required to repay meter costs over a fixed 10-year period, describing such reports as misleading.
Nigeria’s metering gap and presidential commitments
Nigeria currently has an estimated 5.9 million unmetered electricity customers, a gap the Federal Government has pledged to close.
Oseni recalled that President Bola Tinubu identified metering as a priority during his campaign, a commitment now being implemented through DISREP and other initiatives.
He added that a presidential metering initiative is also underway, with procurement being handled under the Office of the Special Adviser to the President on Energy.
As more meters arrive and installations expand nationwide, NERC believes clearer public understanding is essential to avoid exploitation and misinformation.
Why clarity on free electricity meters matters
For millions of Nigerian households, prepaid meters are central to fair billing, energy accountability and consumer trust.
NERC said its clarification aims to protect consumers while ensuring transparency as multiple metering programmes operate concurrently.
With enforcement tightening and deployment accelerating, electricity users are being advised to know their rights, verify meter sources, and report illegal charges.
As Oseni noted, free electricity meters in Nigeria exist—but only within clearly defined government-funded programmes.
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