By Seun Ibiyemi
The Federal Government’s ambitious bid to end the regime of estimated billing by distributing millions of free electricity meters is facing a storm of opposition, with industry insiders warning that financing loopholes, logistical nightmares, and a brewing standoff with Distribution Companies (DisCos) threaten to derail the entire project.
The initiative, anchored on the World Bank-supported Distribution Sector Recovery Programme (DISREP), aims to close Nigeria’s widening metering gap by deploying 3.4 million smart meters at zero cost to end-users.
However, despite the arrival of 2.5 million units including a recent shipment of 1.5 million from China actual utilization remains abysmal, with only about 150,000 meters installed so far.
Minister of Power, Chief Adebayo Adelabu, has drawn a battle line, threatening to prosecute any DisCo, manufacturer, or installer found extorting consumers under the guise of installation fees.
“Pay no kobo,” the Minister declared, urging Nigerians to act as whistleblowers against sabotage.
Yet, behind the scenes, DisCo operators are pushing back against what they term an unrealistic execution strategy. While the government provides the meters, operators argue that the massive costs associated with logistics, customer enumeration, and installation are being forced onto their already fragile balance sheets without a clear recovery mechanism.
Senior DisCo officials, speaking on condition of anonymity, questioned the economic viability of the directive, noting that installation costs are typically amortized over a decade.
“One way or another, someone has to pay,” one official warned. “The government expects DisCos to absorb these capital expenditures, but without a corresponding reflection in tariffs, this makes our financials unworkable.”
The policy is also causing unintended market shocks.
Stakeholders warn that the promise of free meters is actively cannibalizing the existing Meter Asset Provider (MAP) scheme, which allows customers to purchase meters directly. With consumers now pausing purchases in anticipation of government handouts, the sector faces a dangerous vacuum that could stall investment in local meter manufacturing.
“The Minister has sent the wrong message without consulting stakeholders,” a source noted. “People are abandoning the MAP programme, yet the free meters available are nowhere near enough to cover the deficit.”
Former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sam Amadi, has termed the proposal unviable.
He argues that the government’s direct intervention bypasses established market structures.
According to Amadi, meters should remain regulated assets provided by DisCos through tariff designs, and the government’s attempt to play Father Christmas could distort the sector’s long-term sustainability.
Civil rights group, the Initiative For Social Rights Concerns And Advancement (ISRCA), has also raised red flags regarding transparency.
The group fears that without a strict monitoring team, the free initiative will inevitably be hijacked by the sector’s notorious extortion rings, leaving consumers to pay for what should be a public service.
As the standoff intensifies, industry experts agree that unless the government addresses the critical question of cost recovery and aligns with market realities, this well-intentioned reform risks joining the graveyard of failed power sector policies, leaving millions of Nigerians trapped in the darkness of estimated billing.