Free Meter Rollout: Nigeria’s Electricity Regulator Releases N28bn
The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of ₦28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.
According to Order No: NERC/2025/107, which took effect on October 6, the initiative is aimed at accelerating the rollout of meters to customers at no cost, closing the metering gap, and reducing estimated billing disputes in the power sector.
NERC said the fund, drawn from the MAF, provides a “credible revenue stream” from market collections that can enable long-term financing for utilities with limited creditworthiness.
“DisCos shall utilise NGN28,000,000,000 (Twenty-Eight Billion Naira only) of the MAF scheme for Tranche B apportioned in accordance with their respective contributions as at the July 2025 market settlement and detailed in Schedule 1, for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas,” NERC stated.
The regulator directed all DisCos to, within 10 days from the effective date of the order, conduct a transparent procurement process for selecting Meter Asset Providers (MAPs) that have verified and ready-for-deployment meter stock.
DisCos are also to submit the list of selected MAPs to NERC within 15 days for “No-Objection” approval, along with full meter inventory details such as types, brands, serial numbers, and deployment locations.
To promote local participation, NERC mandated that MAPs must meet at least 30 per cent local content requirement and back this up with a memorandum of understanding with local manufacturers or assemblers.
The Commission explained that the initiative will help mitigate the inability of DisCos to raise funds through debt or equity, a situation that has contributed to Nigeria’s metering gap of over seven million customers.
Under the directive, DisCos are required to integrate their systems with the fund manager’s IT platform, complete know-your-customer (KYC) documentation, and confirm readiness for meter installation at all designated customer sites.
“The Commission seeks to establish a clear and transparent framework for the implementation of Tranche B of the MAF scheme,” NERC added.
“This includes strict monitoring, reporting, and evaluation requirements to ensure accountability, efficiency, and transparency in the deployment of MAF-funded meters.”
NERC further warned that if any selected MAP fails to deliver the contracted meter quantities within the stipulated seven-day timeframe, the outstanding meters will be reassigned to another provider on a first-come, first-served basis.
Upon delivery and verification, the fund manager will release 60 percent of the contract sum to the MAP, with the remaining 40 percent paid only after full installation is confirmed.
The commission cautioned that DisCos would be penalised for any installation delays arising from their negligence, including failure to provide network clearance or accurate customer data.
“Where the non-installation of meters is directly attributable to a DisCo’s failure, such DisCo shall be liable to a penalty equivalent to the total cost of the uninstalled meters. The penalty shall be deducted from the DisCo’s approved Administrative Operating Expenditure,” the order read.
NERC set December 31, 2025, as the deadline for completing all installations funded under Tranche B.
The MAF is managed by a fund manager under terms negotiated by the DisCos and approved by NERC.
The new rollout builds on the Presidential Metering Initiative (PMI) launched earlier this year by the Federal Government, which targets the deployment of 10 million meters nationwide by 2030.
