The Nigerian Electricity Regulatory Commission (NERC) said it has approved the disbursement of N28 billion to electricity distribution companies for the second phase of the Meter Acquisition Fund scheme.
Under the scheme, meters will be provided for all outstanding Band A customers free of charge.
The order, cited as ‘NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund’, took effect from October 6, 2025 and forms part of the Presidential Metering Initiative, which aims to close Nigeria’s estimated seven-million-meter deficit.
The commission, in the new directive signed by NERC Vice Chairman, Dr. Musiliu Oseni, and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, said the latest tranche would focus on metering all outstanding unmetered Band A customers while expediting the closure of the metering gap for customers currently classified under Tariff Band B.
“The commission has further approved the deployment of the sum of NGN28,000,000,000 for Tranche B of the MAF Scheme. These funds shall be allocated in proportion to the respective contributions of the DisCos and are intended to meter all outstanding unmetered Band A customers while also expediting the closure of the metering gap for customers currently classified under Tariff Band B,” it explained.
According to the NERC, “DisCos shall utilise N28bn of the MAF scheme for Tranche B, apportioned in accordance with their respective contributions for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.”
It also explained that the N28 billion will be shared among the 11 distribution companies in proportion to their market contributions, with Ikeja Electric receiving the highest allocation of N5.47 billion, followed by Eko DisCo with N4.36 billion, Ibadan DisCo with N4.26 billion, and Abuja DisCo with N3.31 billion, while Yola got N231 million, and Jos received N794 million.
The commission said the initiative was designed to accelerate meter deployment, enhance service quality, and reduce energy theft and collection losses.
According to the order, all the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers.
It explained that Tranche B builds on the first N21 billion tranche, which ended on June 30, 2025, under which the commission approved meter purchases from funds accrued through the national electricity market.
“As of the April 2024 market settlement cycle, the sum of N21.86bn had accrued and was made available for the procurement of meters under the first tranche of the MAF scheme,” the commission noted.
Under the new framework, NERC imposed strict timelines for procurement, delivery, and installation.
The order mandated DisCos to begin the procurement process within 10 days of the order’s effective date and to submit their selected meter providers to NERC within 15 days for approval.
“DisCos shall, within 10 days from the effective date of this order, conduct a transparent procurement process for the selection and execution of a contract with MAPs with verified and ready-for-deployment meter stock for the metering of end-use customer meters under the MAF scheme.
“DisCos shall, no later than 15 days from the date of the order, submit to the commission a list of their selected MAPs and details of meter inventory, including meter types, brand names, serial numbers, and meter location, to obtain a ‘No-Objection’ approval from the commission,” it was stated.
After approval, Meter Asset Providers are required to deliver 100 per cent of contracted meter stock within seven days to the DisCos’ warehouses for verification.
“Where the selected MAP fails to deliver the contracted meter quantities within the seven-day timeframe, supply of the outstanding meter quantities shall be opened up to another MAP on a first-come, first-served basis,” NERC warned.
It further directed that once meters are delivered and verified, the Fund Manager will release 60 per cent of the contract sum, while the remaining 40 per cent will be paid only after full installation is verified.
The NERC warned that distribution companies would be penalised if installation delays arise from their own failures, such as 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,” the order stated.
The commission gave DisCos until the end of the year to complete all installations funded under Tranche B.
“The installation of meters shall be completed by 31 December 2025,” the order declared.
NERC said the Meter Acquisition Fund was created to offset the impact of DisCos’ poor creditworthiness, which has hampered their ability to secure loans for metering and infrastructure.
The commission noted that despite earlier interventions such as the Meter Asset Provider Regulations 2018 and the MAP & National Mass Metering Regulations 2021, Nigeria’s metering deficit remains above seven million.
“There is an urgent and compelling need to accelerate the closure of the metering gap for all customers currently classified under Tariff Band A to safeguard revenue protection and enable effective demand-side management,” the order said.
With the new N28 billion tranche, the commission expects that by the end of 2025, all premium customers on Band A would be fully metered, bringing Nigeria closer to eliminating estimated billing and ensuring more accurate energy accountability across the power sector.
NERC said that the number of metered customers nationwide rose to 6,422,933 as of June 2025, representing a slight rise in the national metering rate from 53.78 per cent in May to 54.33 per cent in June. The NERC data showed that the country’s total active electricity customers rose marginally from 11,784,842 in May to 11,821,194 in June.
