The Nigerian Electricity Regulatory Commission (NERC)’s decision to impose a total fine of N628 million on eight electricity distribution companies (DisCos) for violating the estimated billing cap has sparked mixed reactions among electricity consumers and power sector experts.
The regulatory action, announced on Thursday, is part of NERC’s ongoing efforts to tackle the persistent challenge of arbitrary billing of unmetered customers—a longstanding issue that has eroded public trust in Nigeria’s electricity supply industry.
According to a regulatory notice published on NERC’s X (formerly Twitter) account on Thursday, the affected DisCos include Abuja Electricity Distribution Company (AEDC), Ikeja Electric (IKEDC), Eko Electricity Distribution Company (EKEDC), Enugu Electricity Distribution Company (EEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electric, Kano Electricity Distribution Company (KEDCO), and Yola Electricity Distribution Company (YEDC).
However, while the commission’s move has been hailed in some quarters as a step in the right direction, many electricity consumers say the fines are insufficient and fail to address the underlying problems of mass metering delays and alleged extortion by DisCo officials.
Customers accuse DisCos of corruption
Matthew, a fashion designer based in Abuja, in a conversation with Nairametrics on Friday, said, “Last month, AEDC didn’t bring bill for us. I wrote a petition against them to NERC when I was told by AEDC officials to pay without the bills. I refused to pay and our light was cut off.”
Similarly, Titi Alade, a resident of Egbeda in Lagos, expressed frustration over what she described as “empty promises” from electricity providers.
“They’ve been promising us prepaid meters for years, yet we’re still receiving outrageous estimated bills every month. These fines are not enough. NERC should compel them to meter us, not just punish them after the damage is done,” Alade said.
- In Mushin, Lagos, another consumer, Bisi Ademoke, shared a troubling experience involving the Ikeja Electricity Distribution Company (IKEDC).
“IKEDC did the unimaginable recently. I use a prepaid meter that I nearly fought everyone to get in my flat. One of the flats is unmetered and owed a bill of about N500,000 – an accumulation of old bills. The new tenant refused to connect to the grid since he uses the place as a church. So, they connected to solar instead. Last month, IKEDC officials just came and said the rest of us will share the bill. I was told to pay about N85,000 before we can be reconnected again. Our wires were taken off. This is how IKEDC people behave.”
She mentioned that she has reported the matter to NERC, but no action has yet been taken.
Persistent Metering Gap
According to data from NERC’s Q4 2024 report, over 7 million electricity customers remain unmetered, out of an estimated 13.5 million registered customers nationwide. The situation has created fertile ground for the controversial practice of estimated billing, often referred to by consumers as “crazy bills.”
Despite regulatory directives and the Meter Asset Provider (MAP) scheme introduced to address the metering shortfall, progress remains sluggish. Many households continue to wait for prepaid meters, sometimes for years.
Experts React
While consumer complaints are mounting, some power sector analysts say the fines might not go far enough to reform DisCo behavior.
- Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), speaking to Nairametrics, weighed in on the ongoing issues.
- He remarked that some DisCos have acted in an exploitative manner towards consumers, often taking advantage of the lack of meters to issue inflated estimated bills.
“Some of the DisCos have been very exploitative in their dealings. And, it’s a very good thing that the regulatory commission is standing up to them. Some of them even prefer that people don’t have meters because they have the opportunity to exploit the consumers. So, it’s a very good development. I think it would bring some discipline to the way the DisCos relate with their customers particularly those who are yet to have meters,” he noted.
- Dr. Yusuf also emphasized that this regulatory pressure could motivate the DisCos to expedite the metering process. According to him, the reluctance of some DisCos to provide meters stems from the ease with which they exploit customers through estimated billing.
“I think it would also incentivize the DisCos to also accelerate the rate at which the meters are made available to the customers. Because, for some of them, it is easier to rip off customers with estimated billings, some of them have been dragging their feet as far as this metering is concerned,” the CPPE Chief noted.
“The government, through NERC, should also support the process [of accelerating the metering]. The reality is that many of them [the DisCos] have been exploiting the customers.
“The consumers should also help the DisCos. There have been complaints of energy theft. A lot of people bypass meters. They do all sorts of funny things so that they don’t pay what they are supposed to pay. There are consumers that are also not responsible consumers. So, there should be sanctions on them too.
“We have been told about government agencies that are also not paying their bills. See what happened between Ikeja Disco and the Air Force. Ikeja DisCo said they were owed N5 billion. We have so many government agencies that are not paying. How do you want the DisCos themselves to survive? So, please, there is enough blame to go round,” he remarked.
Kunle Adetiba, a power sector consultant, described the NERC penalties as “more symbolic than corrective.”
“If NERC wants to make an example, it should go beyond fines. License suspension, increased consumer rights advocacy, and accelerated metering targets must be pursued vigorously,” Adetiba told Nairametrics.
Former NERC Chairman, Dr. Sam Amadi, weighed in via X (formerly Twitter), recalling that sanctions were part of his regulatory toolkit during his tenure.
“6 months after privatization, I sanctioned IBDC and AEDC over N100m and sanctioned EEDC millions for overcharging customers,” Amadi wrote.
An AEDC official in Mararaba, who pleaded anonymit,y blamed customers for the issue. He said, “Many customers just like to bribe AEDC officials at every point. The issue of pre-paid meter is rather sensitive.”
For many consumers, justice will only be seen to have been done when metering becomes universal and when arbitrary disconnections become a thing of the past.
As Matthew from Abuja put it: “Until NERC can guarantee meters for all and make DisCos accountable in real-time, these fines are just news headlines. Nothing changes on the ground.”
More insights
On 7 April 2025, the Federal Government announced plans to receive the first batch of 3.205 million electricity meters as part of efforts to bridge the metering gap in the country.
The meters are being procured under the Distribution Sector Recovery Programme (DISREP).
According to NERC, metering by DisCos reached 6,288,624 meters in Q4 2024.