Any official or agent demanding payment for free smart meter initiative is acting illegally and should be reported, the Federal Government has advised.

Under the initiative, 3.2 million smart meters will be procured and installed across the country within four years through competitive bidding.

No fewer than 700,000 units have already been delivered, while about 200,000 have been fixed in homes and businesses served by various distribution companies.

At a joint press conference with the heads of Nigeria’s electricity distribution companies in Abuja, Ayodeji Ariyo Gbeleyi, Director General of Bureau of Public Enterprises (BPE), declared that all meters being distributed under its power sector reform programme are strictly free

He emphasized that customers must not pay a kobo for meter supply or installation under the Distribution Sector Recovery Programme (DISREP), a $500 million World Bank-backed intervention aimed at overhauling the distribution segment of the electricity value chain.

He explained that the nationwide meter deployment is designed not only to close Nigeria’s long-standing metering gap but also to stamp out the culture of arbitrary billing and extortion that has frustrated millions of households and businesses.

According to him, the funding arrangement — secured at single-digit interest rates — offers a cheaper and more sustainable alternative to commercial loans, allowing the government to finance critical infrastructure without pushing additional costs onto consumers.

He said the programme forms part of a broader effort to build a financially stable and service-driven electricity market capable of delivering reliable supply and fair billing. He noted that contractors handling the project have already been paid by the government, eliminating any justification for customers being charged.

Speaking, the Managing Director of Abuja Electricity Distribution Company, Chijioke Okwuokenye, urged customers to reject any payment requests and report offenders immediately.

Also commenting, the Managing Director of Eko Electricity Distribution Company, Wola Joseph-Condotti, said internal measures were underway to identify and remove staff or agents extorting consumers.