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NERC Approves N28bn for Free Meters to Band A, B Customers

The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of ₦28 billion to electricity distribution companies for the second phase of the Meter Acquisition Fund (MAF) scheme, aimed at providing free meters to all unmetered Band A customers and fast-tracking metering for Band B customers nationwide.

The new directive, contained in Order No: 2025/10 titled “Operationalisation of Tranche B of the Meter Acquisition Fund”, took effect on October 6, 2025, as part of the Presidential Metering Initiative designed to close Nigeria’s seven-million-meter deficit.

Signed by NERC Vice Chairman, Dr. Musiliu Oseni, and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, the order mandates all distribution companies to commence the procurement process within 10 days and submit their selected Meter Asset Providers (MAPs) for approval within 15 days.

According to the Commission, the ₦28 billion will be shared among the 11 DisCos in proportion to their market contributions and used strictly for the procurement and installation of meters for unmetered Band A and B customers within their service areas. All meters supplied under the scheme will be provided at no cost to customers.

The Commission emphasised that this second tranche builds on the first ₦21 billion phase, which ended on June 30, 2025, under which funds accrued through the national electricity market were used to procure meters.

Under the new framework, strict timelines have been imposed for delivery and installation. After NERC’s approval, MAPs are required to deliver 100 per cent of contracted meter stock within seven days to the DisCos’ warehouses for verification. Any supplier that fails to meet the deadline will have its outstanding allocation reassigned to another provider.

NERC stated that 60 per cent of the contract sum will be released after meter delivery and verification, while the remaining 40 per cent will be paid only upon confirmed installation. Distribution companies that cause installation delays due to internal lapses, such as network issues or inaccurate customer data, will face penalties equivalent to the cost of the uninstalled meters, deducted from their approved operating expenses.

The Commission gave all DisCos until December 31, 2025, to complete installations under this second tranche, stressing that the initiative is meant to accelerate meter deployment, enhance service quality, and reduce energy theft and revenue losses.

NERC explained that the Meter Acquisition Fund was created to address DisCos’ weak creditworthiness, which has hindered their access to financing for metering and infrastructure. Despite previous interventions, Nigeria’s metering gap remains above seven million.

By the end of 2025, NERC expects all premium Band A customers to be fully metered, marking a major step toward ending estimated billing and ensuring more accurate energy accountability across the country.

As of June 2025, the number of metered customers nationwide stood at 6.42 million, representing a national metering rate of 54.33 per cent.

Mike Ojo

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