DisCos distribute free prepaid meters after regulatory push
Electricity distribution companies in Nigeria have started giving out prepaid meters to customers at no cost, focusing mainly on Band A and some Band B users. This move follows pressure from the Nigerian Electricity Regulatory Commission, whose officials criticized the slow pace of meter distribution. Musiliu Oseni and Nathan Shatti of NERC have both called for improved transparency and faster rollout. The initiative aims to close Nigeria’s significant metering gap and reduce estimated billing for millions of customers.
What we know
- DisCos have begun distributing prepaid meters for free, mainly to Band A and some Band B customers, as part of a government-backed programme.
- Musiliu Oseni and Nathan Shatti of NERC criticized DisCos for slow meter rollout and poor compliance with refund obligations under the Meter Asset Provider scheme.
- The Federal Government procured the meters, but DisCos must repay the cost over 10 years, meaning the meters are not entirely free for the companies.
- NERC approved N28bn for the second phase of the Meter Acquisition Fund, with allocations to all 11 DisCos for metering Band A customers at no cost.
- The commission set strict deadlines, requiring procurement and installation processes to be completed by 31 December 2025, with penalties for delays caused by DisCos.
