Nigeria Government Orders Discos to Replace Phased-Out Meters Amid Upgrade, No Unistar Phase-Out Directive Yet

The Nigeria Government has directed that electricity distribution companies must replace any meters that are phased out due to upgrades. This was clarified by the Nigerian Electricity Regulatory Commission (NERC), which stated that although there is no formal directive to phase out Unistar meters as reported, these meters will soon become inoperable due to technological upgrades, preventing users from purchasing electricity. The commission emphasized that any meter replaced by Discos must be swapped to ensure uninterrupted metering for customers.

Amid Nigeria’s ongoing struggle to close a seven-million-meter gap, certain Discos have demanded that customers acquire new meters before a November 14 deadline. Speaking with our correspondent, NERC Vice Chairman Musiliu Oseni reiterated that no official decision has been made to phase out Unistar meters but pointed out that the issue is being handled “operationally” by the Discos. Oseni explained that the matter is related to the Token Identifier Rollover, which would make it difficult for customers to buy electricity if the meters are not upgraded.

He stressed that “Unistar meters are not upgradable,” which means they will eventually have to be phased out. Oseni added, “Operationally, if they say those meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the Discos to replace them.” He further emphasized that during the replacement process, no customer should be subjected to estimated billing or denied access to electricity.

Oseni also noted that if customers are required to purchase new meters under the Meter Asset Provider (MAP) framework, Discos must ensure a clear refund mechanism, as they are obliged to reimburse customers. He explained, “It’s a win-win for both sides because customers will be frustrated if it gets to a point that they want to vend and the meter is rejected. For Discos to remove the meter, they must make sure a mechanism for replacement happens, either vendor financing, Disco financing, or if it is MAP to be funded by the customer; but the customer must be aware that they would be refunded.”

Meanwhile, the All Electricity Consumer Protection Forum has urged Ikeja Electric and Eko Electricity Distribution Company to pause the decommissioning of meters. The group called on the Discos to await formal regulatory approval from NERC before proceeding with the phase-out. In a letter dated October 15, 2024, and signed by its National Coordinator, Adeola Samuel-Ilori, the forum expressed disappointment at the move to phase out meters without any concrete plan for replacements.