The Nigerian Electricity Regulatory Commission (NERC) has approved an additional N30 billion to support the distribution of free electricity meters to customers across the country through 11 electricity distribution companies (DisCos).
The approval is part of ongoing efforts to improve electricity metering, address the challenges associated with estimated billing and ensure that more electricity consumers have access to accurate billing systems.
The funding is expected to support the procurement and installation of meters for eligible customers who are yet to be metered, helping to reduce the financial burden on households and businesses that have continued to depend on estimated electricity bills.
The latest approval represents the third tranche of the Meter Acquisition Fund (MAF), a programme established under the Federal Government’s Presidential Metering Initiative to address the persistent shortage of electricity meters in Nigeria.
With the fresh N30 billion allocation, the total amount approved under the fund has now reached N79 billion. NERC had previously approved N21 billion under the first tranche and N28 billion under the second tranche.
According to the commission, the latest funding will be distributed among the 11 electricity distribution companies based on their respective contributions to the fund.
The distribution companies are expected to ensure that meter deployment is carried out fairly across the states and communities within their respective areas of operation.
Band A and Band B Customers to Benefit
NERC explained that the third tranche would prioritise customers on Band A who are yet to receive electricity meters, while also accelerating the installation of meters for consumers classified under Band B.
The initiative is expected to help address concerns surrounding estimated billing, which has remained a major source of complaints among electricity consumers.
Under estimated billing, customers without meters are charged based on the electricity consumption estimated by their distribution companies, sometimes leading to disagreements over electricity bills.
By expanding access to prepaid meters, the commission hopes to improve billing transparency and enable consumers to pay for electricity based on their actual consumption.
DisCos Directed to Follow Transparent Procurement Process
As part of measures to ensure proper utilisation of the approved funds, NERC has directed the 11 distribution companies to conduct transparent procurement processes.
The procurement exercise will involve eligible Local Meter Manufacturers and Assemblers (LMMAs), as well as Meter Asset Providers (MAPs) with verified meter stocks.
The commission has also established maximum procurement prices based on the median national online bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.
This measure is intended to prevent inflated procurement costs and promote accountability in the implementation of the programme.
NERC further introduced a two-stage payment arrangement for selected meter providers. Under the arrangement, 70 per cent of the contract payment will be released after the delivery of meter stocks has been verified, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.
NERC Warns Against Charging Customers
The electricity regulator reiterated that all meters provided under the Meter Acquisition Fund programme must be installed free of charge.
It also directed that every meter supplied through the initiative must carry the name of the relevant distribution company, the applicable MAF tranche and the inscription, “NOT FOR SALE”.
The commission warned against any attempt by distribution companies, their agents or meter providers to demand payment from customers for meters covered by the programme.
NERC also clarified that where a distribution company initiates the relocation of an existing customer’s connection point for revenue protection purposes, the company must bear the associated cost.
The order further provides for sanctions against distribution companies whose failures or defaults obstruct the timely installation of meters.
May 2027 Deadline for Installation
To ensure that the programme is completed within the stipulated period, NERC has directed all participating distribution companies and meter providers to comply with its implementation guidelines.
The commission also prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.
All supply and installation contracts under the third tranche must be submitted to the commission for proper monitoring and accountability.
NERC set May 31, 2027, as the deadline for completing all meter installations under the third tranche.
The commission urged all stakeholders to comply with the provisions of the order, stressing that the initiative is part of broader efforts to close Nigeria’s electricity metering gap, improve service delivery and strengthen consumer protection.
The latest approval is expected to provide additional support for Nigeria’s electricity metering programme, although its impact will depend largely on the ability of the distribution companies to procure and install the meters within the specified timeframe.
For millions of electricity consumers still relying on estimated billing, the successful implementation of the programme could represent an important step towards more transparent electricity billing and improved accountability in the power secto