Oahimire Omone Precious | Edited by: Gabriel Osa
Lagos, Nigeria — Consumers in parts of Lagos have raised serious allegations against Ikeja Electric, accusing the electricity distribution company of drastic and unexplained billing practices that saw a simple ₦20,000 prepaid electricity charge allegedly transformed into an estimated debt exceeding ₦1 million on their accounts. The controversy has heightened scrutiny of the company’s billing methods and regulatory compliance at a time when consumer rights and estimated billing practices remain hotly debated in Nigeria’s power sector.
The dispute centres on claims circulating among affected customers and in community forums that a prepaid customer who legitimately purchased power for ₦20,000 saw that amount wiped from their meter credit and, instead, an estimated bill of approximately ₦1.059 million was recorded on their account. Such an outcome — if confirmed — represents a stark example of the frustrations voiced by many electricity consumers across the country, who have long protested estimated billing practices and perceived discrepancies between payment and actual metered consumption.
While details specific to the ₦1.059 million allegation remain limited in official statements, the broader issue reflects ongoing dissatisfaction with how electricity distribution companies (DisCos) handle billing for unmetered or partially metered customers. DisCos, including Ikeja Electric, have periodically resorted to estimated billing — a method that projects electricity usage based on historical or assumed patterns rather than actual meter data. Critics say this practice can produce wildly inflated charges that bear little relation to real consumption, especially where meters are faulty, absent or not properly linked to customer accounts. Independent observers have previously highlighted significant disputes over estimated billing across Lagos, where consumers have reported unexpectedly high and unexplained charges, sometimes reaching into hundreds of thousands of naira.
In related cases across the region, watchdog reports have documented instances where customers challenged estimated or “loss of revenue” bills after prepaid meters were removed or replaced without timely installation of new meters. One such documented matter involved a Lagos resident whose account was credited with cumulative charges far above expected use after a meter replacement delay, and even after a regulatory forum ordered the company to cancel a disputed amount.
Consumer advocates argue that such billing irregularities undermine trust in the power sector, burden households and businesses with unpredictable costs, and contravene the regulatory safeguards intended to protect consumers. They contend that utility providers must ensure accurate metering and transparent billing to reduce reliance on estimates that can be manipulated — intentionally or otherwise — to the detriment of electricity users.
Regulators, especially the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Electricity Regulatory Commission (NERC), have increasingly engaged with distribution companies over consumer rights violations, estimated billing practices and compliance with metering directives. In a separate action this week, the FCCPC sealed Ikeja Electric’s Lagos headquarters over alleged consumer rights breaches tied to prolonged failure to comply with regulatory orders — a move that has shone additional spotlight on the DiscO’s consumer relations and regulatory adherence.
Ikeja Electric, for its part, has acknowledged ongoing engagement with regulators and has stated that it is cooperating to resolve consumer concerns, though it has not publicly addressed this specific claim of a ₦1.059 million estimated bill on a prepaid account. Company representatives have in other contexts emphasised their commitment to upholding consumer rights and working with authorities and affected customers to implement regulatory directives and restore confidence.
Meanwhile, electricity consumers in Lagos and beyond continue to call for stronger protections, clearer billing practices and faster resolution of disputes. Many stress the need for widespread metering, timely replacement of faulty meters, and rigorous enforcement of billing standards to ensure that prepaid customers are billed fairly for actual electricity used, not penalised by opaque estimation methods.
As debates over utility billing practices persist, regulators, utilities and consumer groups are under pressure to find sustainable solutions that balance the operational challenges of the power sector with the everyday realities of households struggling with energy costs and unpredictable bills.
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