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Meter costs spark DisCos–FG showdown on tariffs

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The Bureau of Public Enterprises, an agency of the Federal Government, has said that electricity consumers will pay for the ongoing free meter installation through their tariffs.

The disclosure comes amid a row with electricity distribution companies over who is responsible for covering the cost of the prepaid meters being rolled out under World Bank–funded programmes.

The PUNCH reports that the Federal Government and electricity distribution companies have been at loggerheads over who bears the cost of prepaid meters being rolled out by the Federal Government.

The disagreement erupted after the Minister of Power, Adebayo Adelabu, directed that prepaid meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed for electricity consumers free of charge, warning that any official or installer found collecting money would be prosecuted.

However, electricity distribution companies expressed doubt over the directive, insisting that although customers may not pay cash upfront, the meters would still be paid for by the DisCos over a period of 10 years, raising concerns about cost recovery, installation expenses, and the financial implications for operators.

Reacting to the controversy, the Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi, dismissed claims that the DisCos were being asked to pay for the meters over a 10-year period, regretting that the Federal Government’s free metering programme was receiving pushback from the DisCos.

Speaking in Lagos at the N501bn bond issuance signing ceremony to settle power sector debt, Gbeleyi expressed concern that the DisCos were giving a wrong narrative as far as the free metering initiative was concerned.

Addressing claims by DisCos that they were expected to repay the cost of the meters over a decade, the BPE boss said such assertions were inaccurate and misleading. He noted that meter costs are embedded in tariffs over time, just like transformers, feeders, and other investments of the DisCos.

“We’ve had pushback where some have said, ‘No, the DisCos are paying for the meters over 10 years.’ The truth is, every component of investment that goes into the DisCos gets recouped through the tariff structure. So, whether it is a feeder pillar, whether it is a transformer, or whether it is a meter, we as consumers will ultimately pay for those pieces of equipment through the tariff design,” he said.

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Gbeleyi’s clarification shows that meters are not given to customers at no cost, as they would pay for them through their tariffs. He added that the DisCos often failed to mention the concessional nature of the Federal Government’s intervention, which he said was to be repaid over 20 years.

“However, what they are not telling you is that the Federal Government’s major intervention is indeed one of the best loan transactions today extended to the power sector. It is a 20-year loan facility. It comes with a five-year principal moratorium and a two-year interest moratorium to the DisCos. We have never seen any capital lending to that sector of that magnitude in the history of the power sector in Nigeria,” Gbeleyi said.

He insisted that suggestions that DisCos were paying for the meters were unfounded. “So, for anyone to then suggest that they are paying over 10 years, or that the DisCos are paying for it, that’s absolutely not the case. So we are taking this opportunity to provide that clarity to Nigerians,” he added.

According to him, the Federal Government had embarked on the Distribution Sector Recovery Programme, which is a $500m loan intervention from the World Bank to assist distribution companies to strengthen their infrastructure and improve governance, as well as enhance liquidity.

“In this regard, a total of about 3.22 million meters are being made available to the DisCos,” Gbeleyi said.

Clarifying the status of the metering initiative, he said that the meters were being given to consumers free of charge.

“At this juncture, permit me to also elaborate and clarify that, last week, together with the Minister of Power, we were at the Apapa Port to inspect the recent batch of meters that are coming to the country. In total, out of the initial contract of about 1,437,500 units of meters, we have received over 600,000 meters. And we have also installed close to 75,000 meters, free of charge indeed, to consumers.”

Gbeleyi stressed that electricity consumers were not required to pay for the meters, noting that the intervention was targeted at addressing Nigeria’s wide metering gap.

“Let me reiterate that customers are not meant to pay for these meters. The meters are meant to be given, especially to the unmetered customers. We have about 5.9 million unmetered customers in the country today,” he said.

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According to him, the World Bank–supported programme would only partially bridge the gap, with another intervention already in place to complement it.

“In order to bridge that gap, there is a programme to implement 3.22 million meters. There is another programme that is being led by the Office of the Special Adviser to the President on Energy under the Presidential Metering Initiative, which will also deliver another batch of 2.61 million meters to the DisCos,” Gbeleyi stated.

Earlier, power distribution companies had raised concerns over the minister’s directive, describing it as politically motivated and lacking proper stakeholder consultation.

Operators, who spoke anonymously due to the sensitive nature of the matter, said Adelabu’s announcement failed to consider the role of meter installers and manufacturers, as well as the question of who would bear installation costs.

Last Thursday, the Federal Government banned electricity distribution companies and installers from collecting any form of payment for meters, with Adelabu issuing the warning during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.

The minister said the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed for consumers free of charge, regardless of their tariff band.

“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime. It has to be installed free of charge so that billings and collections will improve for the sector,” Adelabu said.

Despite this, DisCo operators maintained that the cost burden would still fall on them over time. They said the meters tagged as free by the Federal Government would still be paid for by the DisCos within a period of 10 years, adding that it was unclear why DisCos were expected to bear installation costs.

“Those meters you see, someone has to pay for them, and the government expects the DisCos to bear the cost of the so-called free meters. They said the DisCos can pay it over 10 years,” an official with a distribution company stated, but Gbeleyi described this as untrue.

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The official warned that such costs must be recognised in tariff calculations. “When you ask the DisCos to pay for any capital expenditure, we call it allowable capex. You have to allow it when computing their tariffs; otherwise, it makes their balance sheets toxic,” the source said.

Another operator questioned the role of installers in the arrangement. “We need to know that meter installers are not staff of the DisCos. They are already asking who will pay them if the consumers do not pay. Did the minister consider all those? You said the people should not pay the installers; who should pay them? We, the DisCos, are not the ones installing meters,” the operator said.

The operators described Adelabu’s comments as populist. “The statement was just a populist statement from a politician. We are not sure if the President sent him that message. He said everything should be free; where is the position of cost recovery? Anything you do in the power sector, you have to first consider who bears the cost. Somebody has to bear the cost to avoid debt piling up,” one source stated.

They added that wider consultation was needed to avoid misleading the public. “The government ought to sit with the DisCos and the meter manufacturers to seek advice if the plan is to make sure the people don’t bear any cost, and we will come up with our various contributions.

“But instead of doing that, the government would go and make unrealistic promises to the public. For instance, the meters are coming in batches, but you have made the masses believe that there are enough meters for everyone. That’s not the reality,” another source said.

The standoff testifies to the persistent tensions between regulators and operators in the power sector, even as the Federal Government insists that the metering intervention is designed to protect consumers and improve billing efficiency.

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NNPC urged to revive refineries after Dangote snub

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The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, has tackled the Nigerian National Petroleum Company Limited (NNPC) over its attempt to increase its stake in the Dangote Petroleum Refinery despite the poor state of government-owned refineries.

Ukadike stated this while reacting to comments by the President of the Dangote Group, Aliko Dangote, that the refinery rejected requests by the NNPC to increase its 7.25 per cent stake in the $20bn facility.

Dangote had disclosed this during an interview with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Nicolai Tangen, monitored by our correspondents on Wednesday.

Reacting to the development, Ukadike questioned why the national oil company was seeking to invest more funds in the privately-owned refinery when the Port Harcourt, Warri, and Kaduna refineries under its control had remained largely inactive despite billions of dollars spent on rehabilitation.

“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working? Why is NNPC not investing that money in those ones?” Ukadike asked.

He added, “The NNPC did not revive our refineries, but they want to look for where the refinery is already working to put money into it. Does that make sense?”

The IPMAN spokesman said Dangote had the right to reject the offer from the NNPC if he considered it unsuitable for his business interests.

“If Dangote refused to sell more stakes to NNPC, he must have his reasons. Dangote is a businessman. He doesn’t want issues, unnecessary crises, and nepotism. He knows what he wants, and I also think he has enough cash to fund his business,” he stated.

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Ukadike further urged the national oil company to focus on reviving critical oil infrastructure across the country instead of pursuing additional ownership of the refinery. “The NNPC should repair the pipelines and revive the refineries instead of eyeing the Dangote refinery,” he said.

Dangote had stated during the interview that the NNPC was interested in acquiring more shares in the refinery after previously purchasing a 7.25 per cent stake for $1bn in 2021. According to him, the request was rejected because the company planned to list the refinery publicly and allow more Nigerians to own shares in the project.

“The other biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it,” Dangote said.

The NNPC had initially planned to acquire a 20 per cent stake in the refinery, but later reduced its ownership to 7.25 per cent after failing to pay the balance before the June 2024 deadline.

Dangote had explained this in 2024, saying, “The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money up until last year; then we gave them another extension up until June (2024), and they said that they would remain where they had already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent.”

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However, a stakeholder in the petroleum sector who pleaded for anonymity because of the sensitivity of the matter held that the interest of the nation is well served by NNPC having a 20 per cent stake in the Dangote refinery.

“I think Nigeria is better served by NNPC being a shareholder. If NNPC could have taken 20 per cent of that refinery, Nigeria as a country would be better served,” the stakeholder said.

According to him, the fact that the NNPC failed to get the 20 per cent take before does not mean it could not get it again. He said Dangote refused NNPC’s offer because he wants to remain in control.

“You know Dangote is planning to value his company at $50bn. I think he’s going to sell 10 per cent only, so he remains in control, making a lot of money for himself. Selling only 10 per cent means he has 90 per cent. If NNPC were there with 20 per cent, then NNPC would have two directors. These two directors would have some say,” he said.

The stakeholder added that such an important asset cannot exist in a country without the government’s involvement.

“You can’t have such a big asset in the country, and then the government or the government’s agent has no say in the decisions of that company. It can’t happen. It’s wrong. I’m not saying the government must have a say in all the big companies, but in a company that is so big that it can influence whether the sun rises or falls in that country, the government must have a say.

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“The refinery is big. In any case, NNPC is also the supplier of last resort. It’s the national oil company. That has some meaning. I think that in the best interest of the country, if we all agree that Dangote is too big to fail, then it means that Nigerians as a people need to be inside the Dangote refinery to make sure it does not fail,” the operator said.

Meanwhile, a senior official of the NNPC said the NNPC is proud of its current stake in the Dangote refinery.

“The NNPC is proud and happy that we own a 7.2 per cent stake in Dangote. And whatever we own as a stake in Dangote as a national oil company is on behalf of the entire Nigeria. So, when the opportunity presents itself in the long term, yes.

“But right now, we are proud of the 7.2 per cent stake we own in the Dangote refinery. Apart from that, the quality and level of collaboration that is currently going on between NNPC and Dangote is in the interest of the entire Nigeria,” the official said, begging not to be mentioned because he was not authorised to speak on the matter.

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2027 poll spending may trigger inflation, MPC warns

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The Governor of the Central Bank of Nigeria and Members of the Monetary Policy Committee have warned that rising political and election-related spending ahead of the 2027 general elections could undermine the country’s disinflation gains and trigger fresh inflationary pressures.

The warnings were contained in the personal statements of MPC members released by the apex bank and obtained by The PUNCH on Thursday. The MPC, at its 304th meeting held on February 23 and 24, 2026, reduced the Monetary Policy Rate by 50 basis points from 27 per cent to 26.5 per cent, while retaining other key monetary parameters.

CBN Governor, Olayemi Cardoso, had earlier warned in the MPC communiqué that election-related fiscal spending could threaten the inflation outlook despite the current moderation in prices.

According to the communiqué signed by Cardoso, “The outlook indicates that the current momentum of domestic disinflation will continue in the near term. This is premised on the lagged impact of previous monetary policy tightening, sustained stability in the foreign exchange market and improved food supply. However, increased fiscal releases including election-related spending could pose upside risk to the outlook.”

Also, in his personal statement, he noted “Growing fiscal pressures, from reduced government fiscal headroom and the approaching 2027 election cycle, warrant particular attention given the well-established link between pre-election fiscal expansion and inflation.”

CBN Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, also highlighted election-related spending as a major risk to the inflation outlook. He said, “As political activities intensify ahead of the 2027 elections, increased fiscal injections and consumption spending could elevate demand-side inflation.”

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Abdullahi added that “the fiscal deficit has already increased significantly, and election-related spending is likely to exacerbate this trend in 2026 and early 2027.” According to him, stronger fiscal-monetary coordination would be needed to manage the liquidity impact of rising government spending.

Similarly, the CBN Deputy Governor for Operations, Emem Usoro, warned that the pre-election environment could worsen liquidity conditions and inflation expectations. Usoro stated, “Crucially, the pre-election environment increases the risk of liquidity surges, higher FX demand and a drift in inflation expectations.”

She added that the risks justified maintaining tight liquidity conditions despite the moderate rate cut. According to her, “These considerations support small, cautious adjustments and the retention of strong liquidity and prudential buffers.”

Also raising concerns was the newly appointed Deputy Governor, Lamido Yuguda, who said increased fiscal releases and election spending could disrupt the disinflation trend.

Yuguda, who was a former Director General of the Securities and Exchange Commission, noted, “The 75 per cent CRR on non-TSA public deposits remains critical, particularly given the potential for increased fiscal releases as implementation of Executive Order 9 advances.”

He further warned that, “Potential increases in fiscal spending associated with the electoral cycle could generate demand pressures and disrupt the disinflation trajectory.”

A member of the MPC, Dr Aloysius Ordu, warned that political spending tied to the elections could put pressure on foreign exchange demand and test the resilience of the economy. He said, “Domestically, rising political spending and FX demand pressures associated with the 2027 elections will test the resilience of the economy.”

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Ordu added that although reforms such as Executive Order 9 were expected to improve fiscal transparency and strengthen reserves, high debt servicing costs and political-cycle spending remained major concerns for macroeconomic management.

Another MPC member, Bandele Amoo, also expressed concern over excess liquidity from fiscal injections and early political activities ahead of the elections. He said, “My primary concern is the persistence of excess liquidity from fiscal injections, which could undermine disinflation gains and exchange rate stability.”

Amoo further noted that “fiscal spending pressures linked to the 2026 budget cycle, and early political activities ahead of the 2027 elections may heighten risks.”

Another committee member, Professor Murtala Sagagi, said the main domestic risks to inflation included fiscal slippages and election-related spending. He said, “Upside risks to the inflation outlook warrant monitoring, particularly increased fiscal releases including election-related spending and any pass-through from global oil price volatility to domestic fuel prices.”

Sagagi added that “the primary domestic risks are fiscal slippage and the possibility of election-related spending which are medium-term in nature.” He urged stronger fiscal discipline and closer coordination between monetary and fiscal authorities.

The next meeting of the Monetary Policy Committee is scheduled to hold on Tuesday, May 19 and Wednesday, May 20, 2026. This would be about four days after the National Bureau of Statistics is expected to release the country’s Consumer Price Index report for April 2026 on May 15.

Nigeria’s inflation rate rose to 15.38 per cent in March 2026, marking a reversal in the recent easing trend, as increases in food, transport, and accommodation costs pushed prices higher. The PUNCH observed that this was the first time the headline inflation rate had increased since March 2025.

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In its Inflation Forecast report for April 2026, the Financial Market Dealers Association projected that Nigeria’s headline inflation would rise to 16.42 per cent year-on-year in April 2026, as sustained pressure from food prices, higher energy costs and elevated global commodity prices continue to shape the domestic price environment.

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Presidential fleet operations gulp N4.24bn in six months – Read report details

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The Presidential Air Fleet received at least N4.24bn in disbursements between June and December 2025, the latest updates on GovSpend, a civic technology platform that tracks and analyses Federal Government spending, have revealed.

Findings by The PUNCH also revealed that the disbursements, made into the Presidential Air Fleet naira transit account operated by the Presidential Air Fleets (State House), were recorded in eight separate transactions across three months of June, July and December 2025, with the bulk of the transfers concentrated in July, when four transactions totalling N2.43bn were made in the space of a week.

A breakdown of the transactions shows that N1.285bn was disbursed on June 12, followed by N430m on July 24, N1.28bn on July 25, N92m on July 29, and N626m on July 31.

In December, three further disbursements were recorded. They include N9m on December 18, described in the GovSpend database as “Presidential Air Fleet forex transit funds,” N343.9m on December 30 and N90.9m on December 31.

Four of the eight transactions carry no accompanying description, listed simply as “None,” a pattern consistent with previous disbursements to the transit account.

Most disbursements to the Presidential Air Fleet transit account are labelled “Forex Transit Funds,” typically funds allocated for foreign exchange requirements to facilitate international transactions, covering expenses related to operations outside the country, including fuel purchases, maintenance or services in foreign currencies.

The new figures add to a growing cumulative spend that has accelerated significantly since Tinubu assumed office.

At least N26.38bn was spent on the operations of the Presidential Air Fleet from July 2023 to December 2024, with N14.15bn disbursed in 2024 alone.

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The Presidential Air Fleet’s total budget allocation stood at N17.32bn in 2025, declining to N14.70bn in 2026.

The reduction was driven mainly by decreased capital expenditure.

Engine overhaul projects across the fleet consumed N4.58bn in 2024, N8.65bn in 2025 and N6.05bn in 2026, bringing the three-year aggregate to N19.27bn.

Since 2017, under the Buhari administration, budgetary allocations for the fleet have shown a growing trend, with one exception in 2020, rising from N4.37bn in 2017 to N20.52bn in 2024, a 370 per cent increase in running costs over seven years.

In an interview with our correspondent, the General Secretary of the Aviation Round Table, Olumide Ohunayo, had blamed the meteoric rise on the age of some of the aircraft in the fleet and the declining value of the naira, as well as the “commercial use” of aircraft by the Nigerian Air Force.

Ohunayo explained, “The cost will definitely increase over the years because, for one, this issue of the naira against the dollar.

“As the naira keeps falling to the dollar, we will see a rise in cost because most of the costs of training crew and engineers and replacing aircraft parts are all in dollars.

“Also, some of these aircraft are not new. The older the aircraft, the higher the cost of maintenance and operation.

“Lastly, during these past years, terrorism and insecurity have increased in Nigeria, which has also affected the cost of insuring the aircraft.”

In late April 2024, Tinubu was compelled to charter a private jet to continue his journey to Saudi Arabia after the state-owned Gulfstream 550, which had been assigned to carry him, developed an unspecified technical fault in the Netherlands, forcing him to abandon the aircraft mid-tour.

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The episode had prompted the House of Representatives Committee on National Security and Intelligence to recommend the procurement of two new presidential aircraft.

In August 2024, the official Boeing 737 business jet for the President was replaced with an Airbus A330 purchased for $100m through service-wide votes.

The nearly 15-year-old plane, an ACJ330-200, VP-CAC (MSN 1053), is “spacious and furnished with state-of-the-art avionics, customised interior and communications system,” Tinubu’s Special Adviser on Information and Strategy, Mr Bayo Onanuga, said, adding “it will save Nigeria huge maintenance and fuel costs, running into millions of dollars yearly.”

From February through July 2025, the President flew a San Marino-registered BBJ (REG: T7-NAS).

Sources who spoke to one of our correspondents confirmed that the primary aircraft had been flown to South Africa to change its colours to reflect the office of the President. It was flown back in July 2025.

The Presidential Air Fleet comprises a fixed-wing fleet that includes the Airbus ACJ330-200, a Gulfstream G550, a Gulfstream G500, two Falcon 7Xs, a Hawker 4000 and a Challenger 605, three of which are reportedly unserviceable.

The rotor-wing fleet includes two Agusta 139s and two Agusta 101s, operated by the Nigerian Air Force under the supervision of the Office of the National Security Adviser.

The CEO of Centurion Security Limited, John Ojikutu, argued that the disbursements for the air fleet operations were justified considering all related expenses.

“That’s not a big deal. If they are going for repair, particularly for C-checks. It’s always around that range.

“They will fly it abroad, buy fuel, catering, and hotel bills are also involved; pilots will fly it back, and the figure likely includes far more than the direct cost of repairing the aircraft,” Ojikutu explained, adding that the figure likely includes far more than the direct cost of operating the aircraft.

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The Presidency did not respond to inquiries on the nature of the specific disbursements captured in the recent data.

As of the time of filing this report, calls to the Special Adviser to the President on Information and Strategy, Bayo Onanuga, went unanswered.

In an earlier interview with our correspondent, Onanuga had argued that the costs of maintaining the air fleet are not for the President but in the interest of Nigerians.

“It’s not President Tinubu’s plane; it belongs to the people of Nigeria, it is our property…the President did not buy a new jet; what he has is a refurbished jet, but it is a much newer model than the one President Buhari used.

“Nigerians should try to prioritise the safety of the President. I’m not sure anybody wishes our President to go and crash in the air.

“We want his safety so that he can hand it over to whoever wants to take over from him,” Onanuga said.

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