In a major policy enforcement move affecting millions of Nigerian households, the Federal Government has issued a strict ban on all upfront charges for electricity meters. Announced this week by the Minister of Power, Adebayo Adelabu, the directive mandates that Distribution Companies (DisCos) and third-party installers must provide and install meters completely free of charge.

This development comes as a relief to consumers who have long battled with estimated billing and extortionate installation fees. With over seven million unmetered households in Nigeria, this crackdown aims to close the metering gap using resources from the World Bank-funded Distribution Sector Recovery Programme (DISREP).

Key takeaways

• Total Ban on Fees: It is now a punishable offense for DisCos or installers to demand money for meter allocation or installation.
• World Bank Backing: The free meters are funded by the World Bank’s DISREP loan, covering nearly 3 million units in phases.
• Prosecution Threat: The FG has explicitly stated that officials caught extorting customers will face legal prosecution.
• Universal Eligibility: The free metering applies to all customer bands (A, B, C, etc.), not just high-paying users.

What happened

On Friday, Minister of Power Adebayo Adelabu announced that the Federal Government has officially banned electricity distribution companies (DisCos) from collecting any form of payment from consumers for meters. Speaking during an inspection of the new meter inventory, Adelabu clarified that the procurement and installation costs have already been covered under the World Bank-funded DISREP scheme.

The Minister emphasized that the meters are "unprecedentedly free" and that demanding payment whether for the device itself or the installation service is an "illegality." The government has procured an initial batch of 1 million meters, with another 1.5 million scheduled for the next phase. This directive effectively overrides previous practices where desperate customers were often forced to pay vendors under the Meter Asset Provider (MAP) scheme to bypass long waiting times.

What it means

For the average electricity consumer in Nigeria, this means you should no longer pay a single kobo to get a prepaid meter installed. If a DisCo official asks you to pay for a "meter application form," "processing fee," or "installation fee," they are breaking the law.

This move is designed to eliminate "estimated billing" a controversial practice where power companies charge unmetered customers arbitrary amounts regardless of actual usage. By removing the cost barrier, the government hopes to ensure that every home pays only for the electricity they actually consume. It also places the financial burden of infrastructure on the utility providers and the government, rather than the end-user.

Detailed breakdown

The struggle for efficient metering in Nigeria has been ongoing for over a decade. Here is the context behind this new enforcement:

The DISREP Initiative

The current rollout is part of the Distribution Sector Recovery Programme (DISREP), a $500 million facility from the World Bank. unlike the previous Meter Asset Provider (MAP) scheme, where customers could pay upfront to skip queues, DISREP is strictly a public utility project. The goal is to install 3.4 million meters nationwide to reduce commercial losses for DisCos.

Regulatory Timeline

• 2018: NERC introduces the MAP regulation, allowing third parties to sell meters to customers.
• 2020: The National Mass Metering Programme (NMMP) is launched by the Central Bank of Nigeria (CBN) to provide free meters, but faces implementation hurdles.
• 2024 (April): NERC deregulates meter prices under the MAP scheme, causing prices to skyrocket due to inflation.
• 2024 (August): NERC issues strict orders stopping DisCos from charging for the replacement of faulty obsolete meters.
• 2026 (January): The Federal Government issues a total ban on charges for the new DISREP meter rollout, threatening prosecution for non-compliance.

The government has set up a "mobile registration" system to speed up the process, promising that registered customers could have meters installed within days of the inventory arriving in their area.

Impact analysis

Economic or financial impact

Eliminating meter charges removes a significant financial burden from households. In recent years, the cost of a three-phase smart meter had risen to over ₦140,000 under the deregulated MAP scheme. Saving this amount increases disposable income for families. For the power sector, widespread metering will improve liquidity by ensuring DisCos collect revenue for actual energy supplied, reducing the "collection losses" that have plagued the industry.

Social or consumer impact

This policy is a major victory for consumer rights. It directly empowers the Federal Competition and Consumer Protection Commission (FCCPC) to act against utility companies that exploit customers. It also reduces the friction between community members and DisCo officials, which often leads to conflicts over disconnection due to disputed estimated bills.

Business, industry, or policy impact

DisCos will now face intense scrutiny. They can no longer use "lack of funds" as an excuse for the metering gap. However, they must now improve their logistics to handle the massive volume of installations. This may create jobs for certified electrical installers and technicians who will be needed to deploy millions of units rapidly.

Official statements and expert context

Adebayo Adelabu, Minister of Power: "It is an offence for the officials of distribution companies across Nigeria to request a dime before installation... It has to be installed free of charge so that billings and collections will improve for the sector."

Mojisola Abdul, Chairman of Mojec (Meter Manufacturer):
She confirmed that nearly 150,000 meters have already been installed under this new phase and urged consumers to report any installer demanding payment.

FCCPC Stance:
The consumer protection agency has previously warned that "disregard for robust regulatory frameworks... will no longer be tolerated," reinforcing that consumers must not bear the cost of replacing phased-out or faulty equipment.

Frequently asked questions

Can I still pay for a meter if I want it faster?

While the MAP scheme (paid) technically still exists for those who refuse to wait, the government is prioritizing this free rollout. Officials have warned against paying bribes to "fast-track" these specific free meters.

What if my DisCo refuses to install a meter unless I pay?

You should report them immediately. You can file a complaint with NERC or the FCCPC. See our guide on how to file an official complaint against your DisCo.

Does this apply to Band A customers only?

No. The Minister explicitly stated that the meters are for all categories of customers, regardless of their electricity tariff band (A, B, C, D, or E).

Who pays for the replacement of a faulty meter?

According to NERC Order 246/2021, DisCos must replace faulty meters free of charge unless the damage was caused by the customer.

What to watch next

The true test of this directive will be enforcement. In the coming weeks, watch for NERC's release of official monitoring channels where citizens can report extortion. Also, observe how the DisCos manage the logistics of installing 1.5 million meters without requesting "logistics fees" a common loophole used in the past. We also expect further updates on the phase-out of Unistar meters, which has been a point of contention between the FCCPC and DisCos.

Conclusion

The Federal Government’s ban on electricity meter charges marks a critical turning point in Nigeria’s power sector reforms. By declaring these fees illegal and backing the initiative with World Bank funding, the government is moving to end the era of estimated billing and consumer exploitation. However, vigilance is required from consumers to ensure this policy is respected on the ground.

Stay informed, refuse to pay illegal fees, and check back here for updates on how to register for your free meter.