A fresh disagreement has broken out between the Federal Government and electricity distribution companies (DisCos) over the cost of electricity meters and how those costs should be treated in power tariffs.

The tension follows government-backed metering programmes aimed at closing Nigeria’s long-standing metering gap, with officials insisting that meters provided under federal interventions are issued to customers at no direct cost. DisCos, however, argue that the funding for such meters must still be recovered through electricity tariffs to avoid worsening their financial strain.

The Director-General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, pushed back against claims that DisCos are being forced to independently shoulder the cost of meters.

He explained that metering expenses, like other distribution infrastructure investments, are already embedded within the tariff framework approved by regulators. According to him, consumers ultimately pay for these assets gradually through tariffs, not through upfront charges.

Gbeleyi also noted that the current metering drive is largely supported by concessional financing, including a World Bank-backed facility designed to strengthen Nigeria’s power sector. The programme is expected to deliver millions of meters nationwide, reduce estimated billing, and improve transparency in electricity consumption.

Despite this, electricity distributors remain cautious. Industry sources say any capital expenditure on meters must be clearly recognised during tariff reviews to ensure cost recovery. They warn that excluding such costs could further weaken the already fragile finances of DisCos.