Speaking anonymously due to the sensitivity of the issue, the operators described the minister’s announcement as a political statement that overlooked the input of key stakeholders, including meter manufacturers, installers, and distribution companies.

On Thursday, the Federal Government directed that DisCos and meter installers should not collect any payment for meters, warning that officials found extorting consumers would face prosecution. Adelabu made the statement during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, which were procured under the World Bank–funded Distribution Sector Recovery Programme.

“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge. Nobody should collect money from any consumer. It is an illegality,” Adelabu said.

However, DisCo officials pointed out that while consumers may not pay, the costs of the meters and their installation still fall on the distribution companies, to be amortized over approximately 10 years. They highlighted that meter installers are not DisCo employees, raising questions about who would cover their fees.

“Those meters someone has to pay for, and the government expects DisCos to bear the cost. They said we can pay over 10 years. But capital expenditure must be allowed for in tariffs; otherwise, balance sheets become toxic,” one official said.

Another operator added, “Meter installers are not part of the DisCos. They already ask who will pay if consumers don’t. The minister said consumers shouldn’t pay installers, but has he considered that? If the government can pay installers, fine—but I doubt any DisCo will volunteer.”

DisCos described the minister’s directive as populist and lacking clarity on cost recovery. “The statement was political. We are not even sure the President approved it. Somebody has to bear the cost to avoid debt piling up. The government should consult with DisCos and meter manufacturers before making such promises,” a source said.

The operators also warned that the free meter plan could undermine the existing Meter Asset Providers (MAP) scheme, where meters are sold to customers who wish to purchase them. “Now people reject MAP because they think meters are free. The minister’s statement is affecting local suppliers. The government should clarify which areas and categories of customers qualify for free meters,” one official stated.

They urged the government to provide clear answers on who will bear the cost of installation and ensure proper cost recovery. “We agree consumers shouldn’t pay, but who will? If operators are to cover it, how will costs be recovered? Cost recovery is critical; without it, the system will fail,” a DisCo representative emphasized.

Finally, the stakeholders called on the government to communicate transparently with the public, noting that consumers are becoming confused and agitated over the minister’s free meter announcement.