A disagreement has emerged between the Federal Government and electricity distribution companies (DisCos) over the funding of prepaid meters being rolled out under World Bank–supported programmes.
The Bureau of Public Enterprises (BPE) has clarified that while consumers will not pay cash upfront for the meters, the costs will ultimately be recovered through electricity tariffs, similar to other infrastructure investments in the sector.
The dispute followed a directive by the Minister of Power, Adebayo Adelabu, that meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed for consumers free of charge. He warned that any official or installer found collecting money would face prosecution.
However, DisCos have argued that although customers may not pay directly, the financial burden of the meters would still be borne by operators, raising concerns about cost recovery and installation expenses.
Speaking in Lagos, BPE Director-General Ayo Gbeleyi said claims that DisCos are required to repay meter costs over 10 years are misleading. He explained that meter costs, like other power infrastructure, are embedded in tariffs over time.
He added that the Federal Government’s intervention is supported by a concessional World Bank loan and that about 3.22 million meters are being provided under the programme, with additional meters expected under the Presidential Metering Initiative.
Gbeleyi said over 600,000 meters have already arrived, with about 75,000 installed free of charge, stressing that consumers are not required to make direct payments.
DisCos, however, have continued to express concerns over installation costs and the long-term impact on their finances, calling for clearer cost-recovery arrangements and broader stakeholder consultation.
