Electricity distribution companies have expressed reservations over the directive by the Minister of Power, Adebayo Adelabu, that prepaid meters must be provided free of charge to all categories of electricity consumers. Operators, who spoke anonymously due to the sensitivity of the issue, said the declaration was largely political and did not sufficiently reflect consultations with key stakeholders, including meter installers and service providers.
On Thursday, the Federal Government banned distribution companies and installers from collecting any form of payment for electricity meters, warning that officials found extorting customers would be prosecuted. Adelabu issued the directive during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, explaining that the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed for consumers at no cost. He stressed that any request for payment, either directly or indirectly, would be treated as an offence, adding that the policy applies to customers across all electricity tariff bands.
However, DisCo operators told The PUNCH that the meters described as free would still be paid for by the distribution companies over a period of about 10 years. They argued that while consumers may not be charged upfront, the financial burden of procurement and installation would ultimately fall on the DisCos, raising concerns about why the government expects operators to absorb the installation costs without a clear reimbursement framework.