The Federal Government has banned electricity distribution companies (DisCos) and their installers from collecting any form of payment for electricity meters, warning that any official or contractor found extorting customers will be prosecuted.
The Minister of Power, Adebayo Adelabu, issued the warning on Thursday during an on-the-spot inspection of newly imported smart meters at APM Terminals in Apapa, Lagos. The meters were procured under the World Bank–funded Distribution Sector Recovery Programme (DISREP), which aims to close Nigeria’s long-standing metering gap and improve efficiency in the power sector.
Speaking during the inspection, Adelabu stressed that the meters are to be distributed and installed for electricity consumers completely free of charge. He warned that demanding money from customers, either directly or indirectly, amounts to an offence under the programme.
According to the minister, no category of electricity consumer is excluded from the free metering initiative. He explained that all customers, irrespective of their electricity band, are entitled to receive the meters without paying a kobo.
He described it as illegal and unacceptable for officials of electricity distribution companies or third-party installers to request payment from consumers before or during installation, noting that the government would take firm action against any violators.
Adelabu expressed satisfaction over the arrival of another batch of about 500,000 smart meters under the DISREP initiative. He said the Federal Government plans to import and deploy approximately 3.4 million meters in two major phases, with the first phase accounting for about 1.43 million units.
He disclosed that close to one million meters have already been received under the first phase, while about 150,000 have been installed nationwide across the various distribution companies. The newly arrived consignment, he added, represents another major step towards eliminating estimated billing in the electricity sector.
The minister, however, acknowledged that the pace of installation has been slower than expected, describing the situation as unsatisfactory. He said efforts were being intensified to speed up deployment so that more households, businesses, and institutions could benefit from accurate billing.
Adelabu expressed optimism that within the next few years, every electricity consumer in the country would be fully metered. According to him, comprehensive metering would make billing more transparent, fair, and credible, while also boosting consumers’ confidence in the system and their willingness to pay for power consumed.
He explained that improved metering would ultimately enhance liquidity in the power sector by reducing disputes over estimated billing and ensuring that revenue collection reflects actual consumption.
Describing the initiative as unprecedented, the minister said it marked the first time the Federal Government was directly importing and supporting the local procurement of such a large volume of electricity meters to reform the sector.
He emphasized that the metering drive demonstrates the government’s commitment to tangible reforms, rather than empty promises, noting that Nigerians can now see visible action in the power sector.
To ensure compliance, Adelabu said the government would closely monitor the installation process and track reports of illegal charges. He revealed that mechanisms were being put in place to receive complaints from consumers, including collaboration with regulatory bodies and state-level electricity authorities.
He added that a dedicated customer complaint desk would be established to allow consumers report any attempts by DisCo officials or installers to demand illegal payments. Such reports, he said, would be promptly investigated and offenders sanctioned.
The minister also noted that the government was not leaving the metering exercise solely in the hands of the distribution companies. Instead, additional interfaces are being created between installers and consumers to accelerate installations and improve oversight.
Adelabu acknowledged challenges related to incomplete or inaccurate data on unmetered customers, including address verification. He said the Federal Government was working closely with distribution companies to clean up customer data to ensure efficient and timely deployment of meters across the country.
He reaffirmed the government’s resolve to end estimated billing and transform the power sector through improved transparency, accountability, and service delivery, urging electricity consumers to cooperate with installers and report any form of extortion.
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