Nigerian DisCos Explain Why Free Prepaid Meters Are Delayed Despite Government Directive

Nigerian electricity distribution companies (DisCos) are responding to the Federal Government's directive on providing free prepaid meters to Nigerians. DisCos argue that households cannot receive free meters as the government promised because they would have to bear the full costs involved, including installation expenses.

The Ministry of Power directed DisCos to distribute prepaid meters to Nigerians at no cost, but DisCos are questioning the feasibility of this directive. The DisCos claim that the government's promise does not consider the financial implications for them, including the installation costs.

They highlight that the government should clarify who is eligible for free meters to avoid confusion and tensions among consumers. The DisCos warn that failure to address the cost recovery aspect could weaken their financial positions.

The World Bank-funded distribution sector recovery program aims to install meters for consumers free of charge, regardless of their electricity consumption category. DisCos are urging the government and electricity regulators to provide clarity on the funding and installation of free meters.