Power Sector Puzzle: Why Nigerians Still Struggle For Prepaid Meters
Federal Metering Intervention Under Scrutiny
FRESH questions are emerging over the distribution of prepaid electricity meters supplied to power distribution companies under a federal intervention programme aimed at reducing estimated billing across Nigeria.
According to information circulating among electricity consumers, the Benin Electricity Distribution Company (BEDC) reportedly received about 75,000 prepaid meters from the Federal Government of Nigeria for deployment across the four states in its franchise area—Edo State, Delta State, Ondo State and Ekiti State.
Industry sources indicate that roughly 38,000 of the meters were earmarked for Edo State under the Distribution Sector Recovery Program (DISREP), a power-sector reform initiative funded by the World Bank.
The objective of the programme is clear: accelerate the installation of prepaid meters and reduce reliance on the controversial practice of estimated billing.
Under the scheme, consumers are expected to receive the meters free of charge, including installation.
Allegations of Illegal Meter Sales
Despite the programme’s intentions, consumers in parts of the BEDC franchise area have alleged that some officials are demanding payments of up to ₦180,000 for meters that should be distributed at no cost.
While the allegations remain unverified and no official statement has confirmed the claims, the reports have stirred frustration among customers who have waited years to be removed from estimated billing systems.
The complaints reflect a broader pattern of distrust between electricity consumers and distribution companies, rooted in long-standing challenges within Nigeria’s power sector.
Industry observers note that the gap between policy announcements and on-ground implementation often undermines the credibility of reform efforts.
Electricity Theft vs Meter Access
Interestingly, the issue surfaced during discussions in which BEDC officials reportedly cited electricity theft as one of the company’s major operational challenges.
Energy analysts argue that widespread metering could significantly reduce such losses.
Prepaid meters automatically disconnect supply once electricity credits are exhausted, eliminating the need for estimated billing and limiting opportunities for illegal consumption.
This raises an obvious question: if metering can address both revenue losses and consumer complaints, why has the rollout remained slow?
Lessons from Nigeria’s Telecom Revolution
Many observers often compare Nigeria’s electricity sector with the country’s telecommunications industry.
Before the liberalisation of the telecom market in 2001, access to telephone lines was limited and inefficient.
However, operators such as Globacom, MTN Nigeria and Airtel Nigeria introduced prepaid systems that fundamentally changed service delivery.
Under that model, consumers must purchase airtime or data before making calls or browsing the internet. Once their balance runs out, the service automatically stops.
The system virtually eliminated disputes over billing and drastically reduced opportunities for revenue leakage.
Power Sector Reform Still a Work in Progress
More than two decades after telecom reforms transformed communication in Nigeria, the electricity sector—once dominated by the defunct National Electric Power Authority and later Power Holding Company of Nigeria—continues to grapple with operational inefficiencies.
Analysts say that without widespread metering, transparent billing systems and strong regulatory oversight, the sector may struggle to build public trust.
For consumers in Edo and other states served by BEDC, the success of programmes such as DISREP may ultimately depend not just on policy design but on accountability in implementation.
