The Nigerian Electricity Regulatory Commission (NERC) has clarified that not all electricity meters currently being installed nationwide are free, addressing widespread confusion over the Federal Government’s metering initiatives and recent warnings against illegal charges by electricity distribution companies (DisCos).
NERC Chairman, Musiliu Oseni, gave the clarification on Saturday during a radio programme on Fresh FM, explaining that meters provided under government-funded schemes are free at the point of installation, while other options remain available for customers unwilling or unable to wait.
Oseni said meters deployed under the World Bank-backed Distribution Sector Recovery Programme (DISREP) are fully funded by the Federal Government and must be installed at no cost to consumers.
However, customers who consider the rollout too slow can still obtain meters through the Meter Asset Provider (MAP) scheme, which requires payment.
“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. “DisCos are rolling them out. Although the funds come as loans to DisCos at minimal interest, customers are not to be charged upfront. The cost is not to be recovered directly from consumers.”
He stressed that DisCos are prohibited from demanding any payment for DISREP meters, noting that cost recovery under the programme does not involve upfront charges.
“If you get a free meter, you are not to pay anything. No DisCo is allowed to collect money from customers for a DISREP meter,” he said.
Oseni explained that the MAP scheme remains in place for customers who cannot wait for the free rollout due to timing or logistical constraints. Such customers may choose to pay an approved MAP company for meter installation.
READ ALSO: NLC Threatens Protests, Election Boycott Over Senate’s Stance on Electronic Transmission
“There is still the Meter Asset Provider option. Those in areas where free installation may take time and who cannot wait can pay for a MAP meter, but payments must be made to a registered company, not individuals,” he cautioned.
He advised consumers to be vigilant and verify meter types, noting that free DISREP meters carry an identifying inscription. “After the name of the DisCo, you will see ‘DISREP’ on the meter,” he said.
Oseni added that NERC introduced multiple metering initiatives after determining that DisCos were struggling to secure financing. He also disclosed that customers who previously paid upfront for meters under approved arrangements are entitled to refunds.
The clarification follows controversy sparked by the Federal Government’s recent directive banning DisCos and installers from collecting any payment for meters.
Minister of Power, Adebayo Adelabu, issued the warning during an inspection of newly imported smart meters at Apapa, Lagos. He said the meters, procured under DISREP, must be installed free of charge for consumers across all tariff bands.
“Nobody should collect money from any consumer. It is illegal for any official of a distribution company or installer to request payment before installation,” Adelabu said.
Despite the directive, some DisCos have expressed concerns, arguing that while customers may not pay upfront, the cost of meters will still be recovered over time, raising issues about financing and sustainability. Some industry operators also described the policy as politically driven and lacking adequate consultation.
The Bureau of Public Enterprises (BPE), however, maintained that meter costs, like other infrastructure investments, are ultimately recovered through tariffs rather than direct charges.
BPE Director-General Ayo Gbeleyi dismissed claims that DisCos were being forced to repay meter costs over 10 years as misleading. He said all investments in the power distribution system — including transformers, feeder pillars, and meters — are recovered through tariff structures.
He reiterated that unmetered customers, estimated at about 5.9 million, are not expected to make direct payments for meters.
Oseni noted that the DISREP initiative aligns with President Bola Tinubu’s campaign pledge to close Nigeria’s metering gap. He added that a separate Presidential Metering Initiative is also underway, with procurement being handled by the Office of the Special Adviser to the President on Energy.
The explanation is expected to ease public confusion over why some meters still attract charges despite the government’s “free meter” announcement.