The Federal Government has banned electricity distribution companies (DisCos) and their installers from collecting any form of payment for electricity meters, warning that anyone found extorting customers will face prosecution.
The Minister of Power, Mr Adebayo Adelabu, gave the warning on Thursday during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos. He said the meters were procured under the World Bank–funded Distribution Sector Recovery Programme (DISREP) and must be installed for electricity consumers free of charge.
According to the minister, any DisCo official or installer who demands money before or during meter installation is committing an offence and will be sanctioned.
“I want to make it clear that these meters are to be installed and distributed to consumers free of charge—completely free. Nobody should collect money from any consumer. It is illegal,” Adelabu said.
He stressed that the policy applies to all electricity users, regardless of their tariff band, adding that both direct DisCo staff and third-party installers are barred from requesting payment.
Adelabu explained that the meters are part of a major government effort to close Nigeria’s long-standing metering gap and end the problem of estimated billing, which has caused complaints among electricity consumers for years.
During the inspection, the minister expressed satisfaction over the arrival of another batch of about 500,000 smart meters at the Lagos port. He said the shipment was part of the first phase of the DISREP programme.
“The Federal Government is importing a total of about 3.4 million meters in two batches. The first batch is 1.43 million meters. So far, close to one million meters have been received, and about 150,000 have already been installed across the country,” he said.
He added that the latest consignment of 500,000 meters would be distributed to all electricity distribution companies nationwide.
Nigeria’s power sector has struggled for decades with poor metering, leading to widespread use of estimated billing. According to official figures, more than five million electricity customers are still unmetered, often receiving bills that do not reflect their actual consumption.
Many consumers have complained that estimated billing is unfair and has reduced their willingness to pay electricity bills. Experts say this has also affected revenue collection and liquidity in the power sector.
Adelabu said the government’s free meter programme is designed to address these challenges and improve transparency in billing.
“When people are properly metered, billing becomes fair, and consumers are more willing to pay. This will improve collections and strengthen the entire power sector,” he said.
He admitted, however, that progress in metering had been slow in the past and expressed dissatisfaction with the pace of installations so far. Despite this, he said the government was determined to ensure that every household, business, and institution is metered within a few years.
“This is unprecedented. This is the first time a government is importing and buying this number of meters to transform the power sector. This is not just talk. Nigerians can see that this reform is real,” he said.
The minister warned that the government would closely monitor the installation process and take action against anyone who tries to frustrate the programme through extortion or delay.
“We will track and monitor this end to end. We will also rely on tip-offs from members of the public. Extortion will not be tolerated,” he said.
Adelabu said the Nigerian Electricity Regulatory Commission (NERC) and state electricity regulators would play key roles in monitoring compliance. He added that a customer complaint desk would be opened to allow consumers report any illegal demand for money.
“If there are confirmed cases of extortion, no matter how high the official involved is, they will be prosecuted. It will be publicised to serve as a warning to others,” he said.
He also revealed plans to create a register for unmetered customers. According to him, consumers will be able to submit their details, which will then be verified with DisCos to speed up meter installation.
One major challenge, he said, is inaccurate customer data and poor address records, which have slowed down past efforts. He said the ministry is now working closely with DisCos to clean up data and remove these bottlenecks.
“The goal is to accelerate installation and make sure no Nigerian is left behind,” Adelabu said.
He stressed that the free meter programme covers all categories of customers and is not limited to those on Band A or other higher tariff bands.
“The issue of Band A, B, or C is temporary. We are not discriminating. Every Nigerian electricity user is entitled to a meter,” he said.
Also speaking at the event, the Director-General of the Bureau of Public Enterprises (BPE), Mr Ayo Gbeleyi, said the bureau coordinates the DISREP programme on behalf of the Federal Government.
He said concerns that DisCos may delay installations would soon be addressed through a new directive from NERC.
“You will soon see a circular from NERC prescribing clear protocols that DisCos must follow to ensure unhindered access for meter installations,” Gbeleyi said.
He added that the government is monitoring the programme using dashboards and tracking tools to ensure rapid deployment of meters.
Gbeleyi also explained that the meters are customised for each DisCo and cannot be used outside their designated areas.
“A meter configured for Eko DisCo, for example, cannot be installed in Ibadan. Each meter has anti-theft features and is designed for a specific network,” he said.
The Chairman of Mojec, one of the meter manufacturers involved in the programme, Mrs Mojisola Abdul, confirmed that meter installation is already ongoing and free.
“We have physically installed almost 150,000 meters, and they are free. Don’t give anybody money. You are not allowed,” she said.
She announced plans for mobile registration, which would allow customers register for free meters and receive installation within three days.
Addressing public doubts based on past experiences, Adelabu acknowledged that many Nigerians are sceptical due to earlier programmes where customers had to pay for meters and still faced long delays.
“This apprehension is understandable. In the past, meters were limited and people had to pay. But this programme is different. The volume is now sufficient, and installation is free,” he said.
He assured Nigerians that the challenges experienced in the past would be eliminated, adding that government officials and stakeholders had already met to address existing and possible problems.
Adelabu also visited the National Meter Test Station in Oshodi, where meters are tested by the Nigerian Electricity Management Services Agency to ensure they meet required standards before installation.
As Nigeria continues efforts to reform its power sector, the Federal Government says the free meter programme is a key step toward fairness, improved service delivery, and restoring trust between electricity providers and consumers.