- FG has begun efforts to close the metering gap by ordering over 3 million meters, but DisCos and regulators must act faster and more effectively to end ‘crazy billing’.
- DisCos continue to subject over half of Nigeria’s electricity customers to inflated estimated bills due to the slow rollout of prepaid meters.
In an article by Punch Editorial Board, the newspaper criticised the continued use of estimated billing in Nigeria’s electricity sector more than a decade after privatisation.
Eleven years after privatisation, millions of Nigerian electricity consumers still rely on estimated billing due to the absence of prepaid meters. Estimated billing has led to what many customers call ‘crazy billing’, charges far higher than the electricity they consume.
The editorial highlights how electricity distribution companies (DisCos) routinely issue inflated bills and ignore customer complaints, exploiting the weak regulatory oversight of the Nigerian Electricity Regulatory Commission (NERC).
In some cases, customers receive bills ten times greater than their usage. When they seek redress, they often hit a brick wall, as the Nigerian Electricity Regulatory Commission (NERC) lacks the power or the will to stop the illegal practices of distribution companies (DisCos).
Almost every electricity consumer has experienced the excesses of the DisCos as most faced estimated billing before eventually receiving prepaid meters.
The article further highlighted Lagos State Deputy Governor Obafemi Hamzat’s recent experience with Eko Electricity Distribution Company.
He revealed, “Last month, the bill for the official residence was N2.7 million. This month, Eko DisCo sent a bill of N29 million. I sent it to the Commissioner for Energy. It is crazy. I procured a meter to avoid estimated billing, but converting it has been an ordeal.”
His story highlights what many Nigerians without political influence endure regularly: bizarre bills imposed by DisCos without justification. Hamzat’s ordeal is not unique. In 2018, the former Speaker of the House of Representatives, Yakubu Dogara, also lamented outrageous billing at his country home in Bauchi.
DisCos routinely force customers to pay debts they did not incur through inflated, estimated bills. They ignore complaints, wait until they install prepaid meters, and then quietly deduct the alleged debts through subsequent billing.
Recently, NERC issued weak sanctions against some DisCos for their outrageous billing. It fined eight companies a combined N628 million for violating the energy caps on estimated billing for unmetered customers. This penalty is far too lenient. DisCos regularly compel consumers to pay for electricity they never received.
According to the Punch editorial board, NERC can stop ‘crazy billing’ if it acts decisively. It must enforce estimated billing caps, resolve complaints swiftly, and impose stricter penalties on errant DisCos.
Instead, NERC’s regulatory failure emboldens the DisCos, allowing them to get away with inflating bills. Frustrated customers have stopped complaining and resigned themselves to the losses.
To restore credibility, NERC must assert itself as a proper regulator. It should fine DisCos heavily enough to discourage abusive practices.
All electricity consumers must receive prepaid meters. This is the only accurate way to measure electricity usage. NERC must set a clear deadline for DisCos to install meters for all applicants.
As of 2025, 7.18 million out of 13.34 million (53.85%) registered electricity users remain unmetered. This gap is unacceptable. The recent announcement that the government will begin receiving 3.2 million prepaid meters from April 2025 is a welcome development.
Despite this, Nigeria’s power supply remains poor. The country struggles to wheel 5,000 megawatts to the national grid, which suffers frequent collapses. In contrast, Egypt delivers 59,093MW and South Africa 58,095MW to their grids.
The editorial also calls for collaboration between federal and state governments and the private sector to bridge the metering gap and address the country’s persistent power generation shortfalls, especially compared to African counterparts like Egypt and South Africa.
DisCos and the Federal Government, which still hold a 40% stake in the companies, must urgently bridge this gap.