FG Declares War on Meter Extortion: Bans DisCos and Installers from Charging Customers, Threatens Prosecution for Violations

By Emmanuel Kwada

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In a major push to end long-standing consumer exploitation in Nigeria’s power sector, the Federal Government has imposed a nationwide ban on electricity distribution companies (DisCos) and meter installers collecting any form of payment for the supply or installation of electricity meters.

Minister of Power Adebayo Adelabu issued the stern directive during an on-site inspection of newly imported smart meters at APM Terminals in Apapa, Lagos.

The announcement comes as the government takes delivery of an initial tranche of 500,000 smart meters under the World Bank-funded Distribution Sector Recovery Programme (DISREP), part of a broader plan to deploy millions of units and close the country’s estimated seven-million metering gap.

“These meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer,” Adelabu declared emphatically.

“It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime.”

The minister stressed that the free installation policy applies universally, regardless of customers’ tariff bands or locations, and described any demand for payment—direct or indirect—as a criminal offence punishable by law.

“Extortion will not be tolerated,” Adelabu warned. “Once there are confirmed cases of such extortion, the officials involved—no matter how highly placed—will be prosecuted and publicly exposed as a deterrent to others.”

To enforce compliance, the government plans to establish robust monitoring mechanisms, including a dedicated customer complaint desk where Nigerians can report extortion attempts by DisCo officials or installers.

Regulatory oversight will involve both federal and state-level bodies, with whistleblowers encouraged to provide tip-offs leading to investigations.

This directive addresses widespread complaints of DisCos and third-party installers demanding fees—often running into tens of thousands of naira—for prepaid meter installations, despite previous policies aimed at mass metering to eliminate estimated billing and promote transparency.

The move is seen as a critical step in the Tinubu administration’s power sector reforms, which prioritize consumer protection, reduced collection losses, and improved revenue for DisCos through accurate, meter-based billing.

Consumers nationwide have been urged not to pay any fees for meter installation and to immediately report violations through official channels.

The government reiterated its commitment to prosecuting offenders decisively, signaling zero tolerance for practices that undermine ongoing efforts to revitalize Nigeria’s electricity supply.