Pay No Kobo: FG Bans Meter Charges, Vows Prosecution for Extortion

LAGOS – The Federal Government has issued a stern directive to Electricity Distribution Companies (DisCos) and meter installers, imposing an absolute ban on charging customers for the new smart meters being deployed across the country.

​Speaking during an inspection of a fresh consignment of 500,000 smart meters at the APM Terminals in Apapa, Lagos, the Minister of Power, Chief Adebayo Adelabu, declared that any official or third-party contractor caught demanding payment for these devices would face immediate prosecution.

​The DISREP Mandate: No Room for Extortion

​The current rollout is part of the Distribution Sector Recovery Programme (DISREP), a strategic initiative funded by a $500 million World Bank credit. The programme is specifically designed to eliminate the “estimated billing” crisis that has long plagued Nigerian consumers.

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​”It is an illegality and an offence for any DisCo official or installer to request a dime from consumers,” Adelabu emphasized. “These meters are provided by the Federal Government to ensure transparency. They must be installed free of charge, regardless of the customer’s band or location.”

Closing the Gap: 3.4 Million Meters and Beyond

​Nigeria currently faces a staggering metering gap estimated at over 7 million customers. To combat this, the government is executing a phased deployment strategy:

• ​Current Phase: The delivery of nearly 1 million meters is already underway, with 150,000 units already successfully installed across various regions.
• ​The 3.4 Million Target: The DISREP initiative aims to deliver a total of 3.4 million meters in two tranches (1.43 million in the first batch and 1.55 million in the second).
• ​Presidential Metering Initiative (PMI): This complements the World Bank project, with the government securing an additional N700 billion via the Federation Account Allocation Committee (FAAC) to roll out 2 million meters annually over the next five years.

​New Enforcement Measures

​To protect citizens from exploitation, the Ministry of Power has introduced several safeguards:

1. ​Whistleblower Policy: Consumers are encouraged to report any DisCo official or installer asking for “installation fees” or “logistics money.”
2. ​Digital Monitoring: A real-time digital dashboard has been activated to track the progress of installations and ensure that the process remains transparent.
3. ​Mobile Registration: To expedite the process, a “Mobile Metering” system has been launched, promising installation within three days of registration.

A Warning to DisCos

​The Minister warned that the era of “estimated billing” is coming to an end. Under the Electricity Act 2023, the Nigerian Electricity Regulatory Commission (NERC) has the power to impose heavy fines—up to N20 million daily—on DisCos that fail to comply with national metering directives or continue to bridge consumer rights.

​”Universal metering is the only way to restore trust in the power sector,” Adelabu concluded. “We will not allow any partner to undermine this initiative through the extortion of Nigerians.”