Nigerian DisCos and Government Clash Over Meter Costs and Tariffs

The Nigerian electricity sector is embroiled in a dispute as Distribution Companies (DisCos) and the Federal Government clash over meter costs and tariff disclosures. The Bureau of Public Enterprises (BPE) revealed that the ongoing free meter installation program is causing tension, with DisCos reluctant to cover the costs of prepaid meters.

The disagreement stems from the World Bank-funded program aimed at providing free meters to consumers. The BPE Director-General, Ayo Gbeleyi, dismissed claims by DisCos that consumers would bear the meter costs over a 10-year period.

The Federal Government's intervention includes a $500 million World Bank loan to assist distribution companies in improving infrastructure and enhancing liquidity. The program aims to bridge the meter gap in Nigeria, with 3.22 million meters already made available.

DisCos are expected to install these meters free of charge to consumers, contrary to their initial concerns about cost recovery and financial implications.