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The Nigerian government’s recent directive mandating electricity distribution companies (Discos) to disclose details of meter refunds has sparked excitement among electricity consumers nationwide.
The Nigerian Electricity Regulatory Commission (NERC) announced the directive on Monday, February 24, 2025, as part of its commitment to transparency and fairness in the power sector.
For many consumers who have long battled issues surrounding meter payments and refunds, this move represents a significant victory.
For years, electricity consumers in Nigeria have raised concerns over the lack of transparency surrounding the Meter Asset Providers (MAP) programme, which requires customers to pay for meters upfront with the promise of reimbursement through energy credits.
However, many customers lament that refunds have been slow, inconsistent, or completely non-existent.
Mr. Samuel Adewole, a businessman in Lagos, expressed his excitement about the new directive: “I bought my meter under the MAP scheme two years ago, and up till now, I have not received any refund. Each time I ask my Disco, they give one excuse or another. With NERC’s new directive, I believe we will finally see some transparency. It’s a step in the right direction.”
Similarly, Mrs. Funmi Oke, a civil servant in Abuja, praised the government’s intervention, stating that the lack of transparency had discouraged many consumers from trusting the metering system.
“I know people who refused to purchase meters under MAP because they didn’t believe the refund would ever happen. Now that the government is enforcing disclosure, more consumers might be encouraged to get metered,” she said.
NERC’s directive requires all Discos to publicly disclose details of refunds on their official websites. This, according to consumer advocacy groups, will ensure greater accountability.
Mr. Ahmed Sule, a representative of the Electricity Consumer Rights Initiative (ECRI), emphasiSed the importance of this move:
“For too long, the power sector has been shrouded in secrecy. Customers have had to accept whatever Discos tell them without any means of verifying whether they are being treated fairly. This directive is a game changer because it forces Discos to be more accountable.”
Sule further stressed that continuous monitoring and enforcement by NERC would be necessary to ensure compliance.
“We hope that this directive is not just a policy on paper. The government must follow up to ensure that Discos actually publish refund details and process reimbursements as required by law.”
Despite various initiatives, Nigeria still struggles with a significant metering gap. Over seven million electricity consumers remain unmetered, leading to widespread complaints about estimated billing, which many consider exploitative.
Olu Verheijen, President Bola Tinubu’s Special Adviser on Energy, noted that the government aims to bridge this gap through the Presidential Metering Initiative.
“The government is stepping in to ensure that all registered customers of Discos are metered. This is essential for reducing revenue losses and ensuring that consumers pay for only the electricity they use,” Verheijen stated.
According to industry experts, metering is a crucial step toward stabilising the electricity sector. Professor Charles Ede, an energy economist, highlighted how metering can improve revenue collection and service delivery.
“When consumers have meters, Discos can accurately track electricity consumption, reducing disputes over estimated bills. This, in turn, improves revenue collection and enhances the ability of Discos to invest in better infrastructure,” he explained.
While many consumers have welcomed the directive, questions remain about how quickly and effectively Discos will comply. Some Discos have, in the past, cited financial constraints and logistical challenges as reasons for delays in processing refunds.
A spokesperson for one of the major Discos, speaking on condition of anonymity, stated:
“We acknowledge NERC’s directive and are working on implementing it as soon as possible. However, customers must understand that refund processes take time, and each case must be reviewed individually.”
However, consumer rights activists argue that Discos have had ample time to process refunds and should not delay further.
Mr. Bassey Williams, a Lagos-based consumer advocate, insisted that Discos must act swiftly.
“This is not a new regulation. Discos were always supposed to refund customers who paid for meters, but they have been dragging their feet. Now that NERC has intervened, we expect immediate compliance,” he said.
With the Nigerian government taking a more active role in enforcing transparency in the power sector, stakeholders believe this could mark the beginning of broader reforms aimed at improving consumer trust and service delivery.
Dr. Andy Iwuoha, an energy analyst, suggested that beyond meter refunds, the government should implement stronger regulations to ensure fair billing and improved electricity supply.
“The issue of refunds is just one aspect of a much larger problem. The government must also focus on ensuring stable power supply, eliminating estimated billing, and making the entire sector more consumer-friendly,” he advised.
As consumers eagerly await the implementation of NERC’s directive, many hope that this will be a turning point in Nigeria’s electricity sector. With greater transparency and accountability, electricity consumers may finally begin to experience the fairness and efficiency they have long demanded.
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