By: Manoah Kikekon
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| Prepaid meter used to illustrate the story |
LAGOS, NIGERIA — The Federal Government’s latest attempt to end the perennial "crazy billing" crisis in Nigeria has sparked a heated debate between policymakers, electricity Distribution Companies (DisCos), and energy experts. On January 26, 2026, the Minister of Power, Adebayo Adelabu, issued a landmark directive mandating the nationwide rollout of prepaid meters to all consumers at no cost to the customer.
While the move has been hailed as a win for the masses, industry insiders warn that the "free" tag may hide complex financial realities that could strain the already fragile power sector.
The directive, disclosed during an inspection of newly imported smart meters, prohibits DisCos and independent installers from collecting any form of payment for meters. Minister Adelabu emphasized that these meters are part of the World Bank-funded Distribution Sector Recovery Programme (DISREP).
“It is an illegality and an offence for the officials of distribution companies to request a dime before installation,” Adelabu stated. “It has to be installed free of charge so that billings and collections will improve for the sector.”
The government intends to import 3.4 million smart meters under this scheme, with the first million already delivered and ready for distribution.
Energy expert Olukayode Akinrolabu, Chairman of the Customer Consultative Forum for Festac and Satellite Town, described the initiative as a "critical step toward transparency." He noted that the initiative is supported by the N28 billion Meter Acquisition Fund (MAF) and private sector participation.
“DisCos can integrate all postpaid customers into the metering rollout without hesitation,” Akinrolabu said. “However, structural reforms in logistics and manpower are essential for success. Sanctions should be imposed for installation delays caused by poor network readiness.”
Despite the government’s firm stance, some DisCo officials speaking anonymously have labeled the directive a "populist move" that ignores operational costs. They argue that while the hardware might be funded by the World Bank or MAF, the cost of deployment, logistics, and skilled labor for installation remains an unfunded burden.
“Someone must pay for installation,” one official argued. “If DisCos are required to fund this as capital expenditure, it must be recognized as allowable capex and factored into tariffs. Otherwise, it could cripple their balance sheets.”
Providing a more supportive outlook, the Ibadan Electricity Distribution Company (IBEDC) confirmed it is already deploying over 100,000 smart meters under the MAF and DISREP schemes. Angela Olanrewaju, IBEDC’s Coordinating Head of Corporate Services, clarified that the process is automatic.
“Customers do not need to apply or register for the schemes; deployment is being carried out systematically,” Olanrewaju explained. She also reminded customers that those unwilling to wait for the free systematic rollout can still opt for the Meter Asset Provider (MAP) program, where they pay upfront and are refunded via energy credits over time.
Bands A and B: Currently prioritized for the free rollout due to higher revenue potential. Postpaid Users: Targeted for total migration to eliminate estimated billing. Wait Time: Deployment is systematic; your local DisCo will contact you based on your feeder's schedule.
As the 2026 fiscal year unfolds, the success of this directive hinges on whether the Federal Government can bridge the gap between "political promises" and "operational costs" to ensure that the meters actually reach the walls of Nigerian homes.