Why fixing Nigeria’s power crisis must start with the discos

For many Nigerians, electricity is not a service; it is a gamble. A gamble between darkness and light, between inflated bills and unreliable supply, between promises made and promises broken.

So when the federal government announced a N3.3 trillion plan to clear longstanding debts in the power sector, it sounded, at first, like long-overdue relief. After more than a decade of accumulated obligations across generation companies, gas suppliers, and distribution networks, such an intervention should signal a turning point.

But for ordinary Nigerians, a deeper question remains: will anything really change?

Because beyond the billions being committed, the everyday experience of electricity consumers tells a different story, one defined by distrust, opacity, and, most notably, the persistent failure of distribution companies (Discos) to fully meter their customers.

At the heart of Nigeria’s electricity crisis lies a simple but fundamental breakdown (the disconnect between what consumers are billed and what they actually receive).

For years, millions of Nigerians have been subjected to estimated billing, a system widely seen as arbitrary and exploitative. Customers without meters are charged fixed or inflated rates, often bearing no relationship to actual consumption. In many cases, households that barely receive a few hours of electricity daily are billed as if they enjoy an uninterrupted supply. This is not just inefficient; it is unjust.

The refusal, or inability, of Discos to fully meter their customers raises uncomfortable questions. Metering is not a new idea. It is a basic requirement for any functional utility system. Yet, years after privatisation, millions remain unmetered, while discos continue to collect revenue based on estimates.

To many Nigerians, this is not incompetence; it is convenience.

The government’s N3.3 trillion debt settlement aims to stabilise the power sector by clearing legacy obligations and restoring liquidity across the value chain. In theory, this should enable power plants to operate more efficiently, ensure gas suppliers are paid, and attract new investment.

But here lies the risk: injecting funds into a broken system without fixing its structural flaws may simply recycle inefficiency.

If discos continue to operate without transparency, accountability, and proper metering, then improved generation will not necessarily translate into better service for consumers. Instead, it could mean more electricity flowing into a system that still cannot measure, bill, or distribute it fairly.

In such a scenario, Nigerians would once again be left paying more for a system that gives them little in return.

In a properly functioning electricity market, the relationship between provider and consumer is clear and fair.

Every customer is metered. Billing is transparent and directly tied to actual consumption. Service quality determines cost; if supply improves, customers pay accordingly; if it fails, they are not charged for what they did not receive.

Distribution companies operate as true service providers, competing on efficiency and customer satisfaction rather than exploiting gaps in regulation. Regulatory bodies enforce standards rigorously, ensuring that no operator can profit from inefficiency or opacity.

Most importantly, electricity becomes reliable enough that businesses can plan, households can live with dignity, and the economy can grow without the burden of self-generated power.

This is the standard Nigeria must aspire to.

If the current intervention is to succeed, it must go beyond debt settlement and confront the structural issues head-on.

The universal metering must become non-negotiable. Every electricity consumer should have a meter within a defined and enforceable timeframe. Any disco that fails to meet this obligation should face strict penalties, including financial sanctions or loss of licence.

Estimated billing must be phased out completely. It has outlived any justification and now serves primarily as a tool for inefficiency and exploitation.

Regulatory enforcement must be strengthened. The Nigerian Electricity Regulatory Commission must move from passive oversight to active enforcement, holding Discos accountable for service delivery, billing practices, and investment commitments.

Transparency must be institutionalised. Consumers should have access to clear information on tariffs, supply hours, and complaint resolution mechanisms. Technology can play a key role here, from smart meters to digital monitoring systems.

Investment in infrastructure must extend to distribution. While generation often receives the most attention, it is the distribution network that ultimately determines whether electricity reaches the end user. Weak infrastructure at this level undermines the entire system.

Nigeria’s power sector does not suffer from a lack of funding alone; it suffers from a lack of accountability.

The N3.3 trillion intervention is an opportunity, but it is also a test. A test of whether the government is willing to demand performance, whether regulators will enforce standards, and whether Discos will finally align their operations with the interests of the people they serve.

For too long, Nigerians have paid for darkness through inflated bills, generator costs, and lost economic opportunities. They deserve a system that works, one where payment reflects service and service meets expectation.