Federal Government Declares Meter Installation Charges Illegal, Warns DisCos of Prosecution
The Federal Government has taken a decisive stance against electricity distribution companies (DisCos) and their installers, prohibiting them from collecting any form of payment for meter installation. This move declares such charges illegal and punishable by law, with officials found extorting customers facing prosecution.
Minister Issues Strong Warning During Smart Meter Inspection
The Minister of Power, Adebayo Adelabu, issued this stern warning on Thursday, January 22, 2026, during an on-site inspection of newly imported smart meters at APM Terminals in Apapa, Lagos. These meters were procured under the World Bank-funded Distribution Sector Recovery Programme and must be installed for consumers completely free of charge.
"This is free of charge. Nobody should collect a dime from any consumer," Adelabu emphasized. "It is an offence for DisCo officials or installers to demand money, directly or indirectly. Any such act is an illegality."
Massive Arrival of 500,000 Smart Meters
Adelabu expressed satisfaction with the arrival of another tranche of approximately 500,000 smart meters, adding to nearly one million units already received under the first batch of the programme. In total, the Federal Government plans to import about 3.4 million meters in two batches, with 1.43 million in the initial phase.
So far, almost 150,000 meters have been installed across all distribution companies nationwide. However, the minister acknowledged that the pace of installation remains slow and must accelerate significantly to close Nigeria's long-standing meter gap.
"These are all smart meters," he noted. "I believe the journey to eliminate the meter gap in the Nigerian power sector has just begun."
Universal Coverage Without Discrimination
According to Adelabu, these meters will be distributed to all electricity customers regardless of tariff band. He stressed that the programme is not limited to Band A customers and will cover households, businesses, and institutions across the country.
"The aggregate meter gap cuts across all categories," he explained. "We are prioritising every Nigerian. Band classifications are temporary. The meters will be given to all levels of customers."
The minister added that universal metering would improve transparency, fairness, and willingness to pay, ultimately boosting liquidity in the power sector and creating a more sustainable electricity distribution system.
Strict Enforcement Mechanisms
To ensure compliance, the government will implement several enforcement measures:
- End-to-end tracking of installations
- Reliance on consumer tip-offs and reports
- Establishment of a dedicated customer complaint desk
- Collaboration with Nigerian Electricity Regulatory Commission, state regulators, and field monitors
Adelabu warned that "confirmed cases of extortion will be prosecuted, no matter how high the official involved. It will be publicised to serve as a deterrent."
Infrastructure and Coordination Efforts
The government is also working with DisCos to clean customer data and addresses while creating a comprehensive register for unmetered customers to fast-track deployment. The Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi, revealed that NERC will issue a new order prescribing clear protocols to ensure unhindered access for meter installations.
Gbeleyi noted that the meters are configured for specific DisCos and embedded with advanced anti-theft technology, making cross-installation impossible and ensuring proper allocation.
Manufacturers Promise Rapid Deployment
Mojec Chairman, Mojisola Abdul, confirmed that nearly 150,000 meters have been installed free of charge and warned consumers not to pay anyone for installation services. She announced a mobile registration initiative that promises installation within three days of registration, significantly accelerating the deployment process.
Adelabu also inspected the National Meter Test Station in Oshodi, where meters are certified to meet national standards. Nigeria currently has over five million customers on estimated billing, a significant gap the government says it is determined to close through this comprehensive metering initiative.
Background of the Meter Rollout
This nationwide deployment follows sharp criticism from NERC chairman Musiliu Oseni, who accused DisCos of dragging their feet despite the availability of meters already procured under federal intervention programmes. The rollout targets between 600,000 and 700,000 meters initially, with priority given to Band A and some Band B customers, though the programme ultimately aims for universal coverage.
