KEY POINTS

• NERC has approved ₦30bn for the third tranche of the Meter Acquisition Fund.
• DisCos must provide the meters free and complete installations by May 31, 2027.
• The funding will prioritise unmetered Band A customers and extend coverage to Band B.

MAIN STORY

The Nigerian Electricity Regulatory Commission (NERC) has approved ₦30 billion for the third tranche of the Meter Acquisition Fund (MAF), directing electricity distribution companies (DisCos) to provide meters free of charge and complete installations by May 31, 2027.

The commission announced the approval in Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, released in Abuja on Tuesday.

The order, which took effect on November 2, establishes the framework for distributing the funds among Nigeria’s 11 electricity distribution companies as part of the Presidential Metering Initiative.

NERC said the ₦30 billion would be shared according to each DisCo’s contribution to the fund.

The money is intended to cover all remaining unmetered Band A customers and accelerate metering for Band B customers, with installations distributed equitably across states within each DisCo’s operating area.

The commission directed DisCos to conduct transparent procurement processes involving eligible Local Meter Manufacturers and Assemblers (LMMAs), as well as Meter Asset Providers (MAPs) with verified meter stock.

It also set maximum procurement prices based on the median national MAP online bid prices from the September bid cycle.

Under the payment arrangement, selected meter providers will receive 70 per cent of their payment after verified delivery of meter stock, while the remaining 30 per cent will be paid after complete installation is confirmed.

NERC stressed that customers must not pay for meters supplied and installed under the programme.

It also directed that each meter must display the name of the relevant DisCo, the applicable MAF tranche and the inscription “not for sale”.

The commission added that where a DisCo relocates an existing customer’s connection point for revenue protection, the distribution company must bear the cost.

THE ISSUES

The approval addresses one of the persistent problems in Nigeria’s electricity market: customers paying for electricity without having meters that accurately record their consumption.

Without a meter, a customer may be placed on estimated billing, where the DisCo calculates electricity charges using an estimate rather than actual consumption. This can create disputes when customers believe they are being charged for more electricity than they use.

Providing meters free of charge is intended to reduce that problem and improve confidence in electricity billing.

The focus on Band A and Band B customers is also significant because electricity supply classification affects the service customers are expected to receive. NERC’s directive prioritises completing metering for customers in Band A before extending coverage to Band B.

However, approving the funds does not automatically mean customers will receive meters on schedule. DisCos must procure the equipment, ensure delivery and complete installations before the deadline.

The two stage payment arrangement is designed to discourage providers from collecting the full contract payment without completing installations. By withholding 30 per cent until installation is confirmed, NERC creates a financial incentive for providers to finish the work.

The free meter requirement also places an important restriction on DisCos and their agents. Customers should not be charged for meters supplied under this programme.

WHAT’S NEXT

NERC said the order requires monitoring, reporting and evaluation by the Fund Manager, DisCos and participating meter providers.

All supply and installation contracts must also be submitted to the commission.

The DisCos are expected to complete the installations by May 31, 2027, while NERC will oversee compliance with the procurement, payment and consumer protection requirements.

BOTTOM LINE

The ₦30 billion approval provides another round of funding to expand electricity metering in Nigeria. Its success will depend on whether DisCos and meter providers deliver and install the equipment on time without passing the cost to customers.