Nigerian Agency Clarifies Consumers Will Cover Prepaid Meter Costs Despite Free Installation Claims

The Bureau of Public Enterprises (BPE) in Nigeria has clarified that consumers will ultimately bear the cost of prepaid meter tariffs, despite the federal government's stance on free meter installation. The explanation comes amidst public disagreement with electricity distribution companies (DISCOs) over the issue.

BPE's Director-General, Ayo Gbeleyi, revealed that the cost of meters and infrastructure will be covered by consumers through electricity tariffs over time. This clarification follows the launch of a N501 billion bond issuance to address the power sector's debt.

The World Bank is supporting a program to deploy prepaid meters, with DISCOs expected to repay the cost over a 20-year period. The initiative aims to bridge Nigeria's wide meter gap, with an estimated 5.9 million unmet customers.

While the initial target is to install 3.22 million meters, 600,000 meters have already arrived in Nigeria, with approximately 75,000 units installed. The program complements the government's efforts to improve infrastructure in the power sector.