The Nigerian Electricity Regulatory Commission (NERC) has explained why some electricity meters being installed across the country are free while others still require payment, following growing public confusion over the Federal Government’s metering programmes.

The clarification was given by the Chairman of NERC, Musiliu Oseni, during a radio chat with Adeola Samuel-Ilori on Fresh FM on Saturday. Oseni said meters provided under government-funded initiatives are installed at no cost to consumers, while alternative options remain available for those who cannot wait for the free rollout.

According to him, meters supplied under the Distribution Sector Recovery Programme (DISREP) are fully funded by the Federal Government and must be provided free of charge. However, customers who are unwilling or unable to wait for the DISREP deployment may choose to pay for meters under the Meter Asset Provider (MAP) scheme.

“The meter provided by the government is 100 per cent free. The DISREP meter is free because it is paid for by the government.

The DisCos have been rolling it out. Of course, they will pay the money back, but the loan comes at a very minimal interest rate. So, through the tariff, DisCos are not going to charge customers because of the meter. They are to provide it free of charge to the customers, and that is what the minister and the DG of BPE actually meant. And it is 100 per cent free,” Oseni said.

He stressed that electricity distribution companies (DisCos) are not allowed to demand payment from customers for meters deployed under the DISREP initiative, noting that cost recovery does not involve upfront charges.

“If you get the free meter, you are not to be paid anything. Ideally, you are meant to pay for the cost of the meter given to you through the tariffs. So, no DisCo is allowed to collect money from customers because of a DISREP meter.”

Oseni explained that the MAP scheme is still in place for customers who live in areas where the free meter rollout may take longer.

“There is still the Meter Asset Provider. Those residing in an area where it will take time before the free installation gets to them, and they cannot wait, can decide to pay for a Meter Asset Provider. But they must ensure that they pay into a company, not an individual,” he stated.

He also advised consumers to be vigilant, adding that DISREP meters can be easily identified.

“When the MAP meter gets to them, they can check whether it is a meter that is meant to be free that is being provided after payment. If you look at the free meters carefully, there is an inscription. After the name of the DisCo, you will see DISREP,” he explained.

The NERC chairman said the commission introduced several initiatives to address Nigeria’s metering gap after assessing the financial challenges faced by DisCos.

“When we evaluated the financing, we realised that based on the difficult situation, the current situation, it would be difficult for them to attract financing. Banks will look at their books before they can lend them money. That was why we said, ‘Okay, let’s come up with some of these initiatives,” he said.

Oseni added that customers who paid upfront for meters under approved arrangements are entitled to refunds.

“If you pay for your meter upfront, you are meant to get refunded. But if you get the free meter, you are not to be paid anything; you are meant to pay for the cost of the meter given to you through the tariffs,” he disclosed.

The clarification comes amid controversy following the Federal Government’s warning to electricity distribution companies and installers against collecting money for meters.

The Minister of Power, Adebayo Adelabu, issued the directive during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos. He said the meters were procured under the World Bank-funded DISREP programme and must be installed free of charge for consumers across all tariff bands.

“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge, free of charge. Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime,” Adelabu said.

Despite the directive, some electricity distribution companies raised concerns, arguing that while customers may not pay upfront, the cost of meters would still be borne by DisCos over time. Some operators described the policy as politically motivated and lacking sufficient consultation with installers and manufacturers.

In response, the Bureau of Public Enterprises (BPE) said electricity consumers would ultimately pay for meters through tariffs, as is the case with other infrastructure investments.

Reacting to claims that DisCos were required to repay meter costs over 10 years, the Director-General of BPE, Ayo Gbeleyi, dismissed the assertions.

“We’ve had pushback where some have said, ‘No, the DisCos are paying for the meters over 10 years. The truth is, every component of investment that goes into the DisCos gets recouped through the tariff structure. So, whether it is a feeder pillar, whether it is a transformer, or whether it is a meter, we as consumers will ultimately pay for those pieces of equipment through the tariff design,” Gbeleyi stated.

He added that customers are not expected to make direct payments for meters, especially unmetered customers, noting that about 5.9 million electricity users in Nigeria are yet to be metered.

Oseni also recalled that President Bola Tinubu had pledged during his campaign to close the metering gap, adding that the process had begun with DISREP.

According to him, the Presidential Metering Initiative is also underway, with procurement still ongoing under the Office of the Special Adviser to the President on Energy.

Since the announcement of the free meter programme, many customers have questioned why some meters still attract costs. Oseni said the distinction between DISREP and MAP meters explains the difference.

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