The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of N28 billion to DisCos for the procurement and installation of meters nationwide. The project, under the Meter Acquisition Fund (MAF) tranche B scheme, is designed to accelerate the rollout of free prepaid meters to Nigerians.
According to Order No. NERC/2025/107, dated October 6, the initiative is structured to provide a revenue stream from market collections that can leverage long-term financing. The initiative is also meant to address the inability of DisCos to raise funds through debt or equity for metering investments.
NERC noted that the distribution of funds is in respect of DisCos’ contribution as of July 2025. The N28 billion will be used for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their operation areas.
In its implementation process, NERC had directed all DisCos to select a Meter Asset Provider (MAPs) within the next 10 days (from Oct 6) for the deployment. The DisCos are to ensure that MAPs are credible and possess verified, ready-for-deployment meter stock.
“The selected MAPs must be submitted to the commission within 15 days for “No-Objection” approval, along with detailed meter inventory, including types, brands, serial numbers, and locations,” it added.
In addition, NERC directed MAPs participating in the scheme to meet a minimum 30% local content threshold, which must be backed by local manufacturers.
The new initiative builds on the Presidential Metering Initiative (PMI), launched earlier this year by the federal government to deliver 10 million meters nationwide by 2030. The initiative aims to deploy over 10 million smart and prepaid meters by 2027, starting with an initial rollout of 7 million units to achieve 60% metering coverage and reduce losses.
The MAF is managed by a fund manager under terms negotiated by the DisCos and approved by the commission.
Implementation and cautions for DisCos and MAPs
As part of its implementation, NERC directed all DisCos to integrate their systems with the fund manager’s IT platform. For proper disbursement, they are also meant to complete know-your-customer (KYC), do proper documentation and confirm readiness for metering at all designated customer locations.
The commission noted that it will incorporate strict monitoring, reporting, and evaluation requirements to ensure accountability, efficiency, and transparency in the deployment of MAF-funded meters.
“The Commission seeks to establish a clear and transparent framework for the implementation of Tranche B of the MAF scheme,” NERC added.
The commission also set a threshold for MAPs to deliver. Provided the selected MAP fails to deliver the contracted meter quantities within the seven-day time frame, the supply of the outstanding meter quantities shall be opened up to another MAP on a first-come, first-served basis.
Also, once meters are delivered and verified, NERC explained that the fund manager will release 60% of the contract sum. The remaining 40% will be paid only after full installation is verified.
The commission stressed that DisCos would be penalised if installation delays arise from their own failures. This includes not providing network clearance or accurate customer information.
“Where the non-installation of meters is directly attributable to DisCo’s failure, such DisCo shall be liable to a penalty equivalent to the total cost of the uninstalled meters. A penalty shall be deducted from the DisCo’s approved Administrative Operating Expenditure,” it added.
The regulator gave DisCos until 31 December 2025 to complete all installations of meters funded under Tranche B.
Recently, NERC revealed that the total billed amount by Nigeria’s 11 electricity Distribution Companies (DisCos) hit N261.82 billion for May 2025. According to the report, only N191.57 billion was collected, resulting in a collection efficiency of 73.17%, representing a 4.42% spike from April.
The July report provides a detailed breakdown of billing efficiency, revenue collection, and recovery performance across the country.