The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of ₦28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B Scheme.
The initiative, announced through Order No: NERC/2025/107, which took effect on October 6, is aimed at closing Nigeria’s multibillion-naira metering gap, estimated at more than seven million customers. It is also expected to reduce billing disputes and promote transparency in electricity consumption across the country.
According to the Commission, the ₦28 billion fund is a financial intervention designed to accelerate the free rollout of meters to customers in Bands A and B—the top-tier electricity consumers—within each DisCo’s franchise area.
“The intervention will provide a credible revenue stream from market collections that can leverage long-term financing for utilities with limited creditworthiness,” NERC said.
Under the new order, DisCos have 10 days from the effective date to conduct a transparent procurement process for selecting qualified Meter Asset Providers (MAPs) with verified, ready-for-deployment meter stock. The shortlisted MAPs must be submitted to NERC within 15 days for “No-Objection” approval, along with full details of meter inventory, including brand, serial numbers, and storage locations.
The commission also mandated that all participating MAPs must meet a minimum 30 percent local content requirement, supported by agreements with Nigerian manufacturers or assemblers.
To ensure accountability, NERC introduced strict monitoring and reporting rules. Once meters are delivered and verified, 60 percent of the contract sum will be released to suppliers, while the remaining 40 percent will only be paid after installation is confirmed.
Any MAP that fails to supply the agreed meter quantities within seven days will forfeit the order, which will be reallocated to another vendor on a first-come, first-served basis.
In addition, NERC warned that DisCos would face stiff penalties for delays caused by their own negligence, such as failure to provide network clearance or accurate customer data.
“Where the non-installation of meters is directly attributable to a DisCo’s failure, such DisCo shall be liable to a penalty equivalent to the total cost of the uninstalled meters,” the order stated.
The regulator has set December 31, 2025, as the deadline for the completion of all installations funded under the MAF Tranche B scheme.
The Meter Acquisition Fund is managed by an independent fund manager under terms approved by NERC and negotiated by the DisCos.
The new scheme complements the Presidential Metering Initiative (PMI) launched earlier this year by the Federal Government to deliver 10 million prepaid meters nationwide by 2030, marking one of the most ambitious power sector reforms in recent years.