NERC approves N30bn free meters for Band A, B customers
The Nigerian Electricity Regulatory Commission (NERC) has approved N30 billion for the procurement and installation of free prepaid electricity meters for unmetered Band A and Band B customers, in a fresh intervention aimed at reducing estimated billing, improving revenue collection and addressing Nigeria’s persistent metering gap.
The funding, approved under the third tranche of the Meter Acquisition Fund (MAF), will provide free meters to eligible electricity consumers, with priority given to unmetered Band A customers and accelerated metering of Band B customers.
The intervention is significant for households and businesses that have continued to contend with estimated billing, which often exposes consumers to disputes over electricity consumption and payment obligations.
The approval is contained in Order No. NERC/2026/121 on the Operationalisation of Tranche C of the MAF, which took effect on November 2, 2026, under the Federal Government’s Presidential Metering Initiative.
Under the arrangement, the N30 billion will be distributed among the 11 electricity distribution companies (DisCos) according to their respective contributions to the Fund, with installations to be spread equitably across states within their franchise areas.
The Commission has directed the distribution companies to conduct transparent procurement exercises involving eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) with verified meter stock.
To prevent excessive procurement costs and ensure value for money, NERC has established maximum purchase prices based on the median national MAP online bid prices recorded during the September 2026 bid cycle.
The payment structure also introduces safeguards against poor delivery and incomplete installations, with selected meter providers entitled to receive 70 per cent of their payment after verified delivery of meter stock.
The remaining 30 per cent will only be released after the Commission confirms that installation has been completed.
NERC has further directed that all meters procured under the programme must be supplied and installed free of charge to eligible customers.
Each meter must carry the name of the relevant distribution company, the applicable MAF tranche and the inscription “NOT FOR SALE” to prevent diversion and unauthorised charges to consumers.
The Order also addresses the additional costs customers could face when distribution companies initiate changes to existing connection points for revenue protection purposes.
Under the directive, where a DisCo initiates the relocation of an existing customer’s connection point for such purposes, the distribution company must bear the associated cost rather than transferring the financial burden to the consumer.
Beyond the procurement arrangement, the Commission has introduced monitoring and accountability requirements to ensure that the N30 billion intervention translates into actual meter installations.
The Fund Manager, distribution companies and participating meter providers are required to comply with reporting, monitoring and evaluation obligations, while all supply and installation contracts must be submitted to the Commission.
DisCos could also face sanctions where their failure to comply with the Order causes delays or prevents meter installations.
All installations under the third tranche must be completed on or before May 31, 2027.
For electricity consumers, the intervention could reduce exposure to estimated billing by ensuring that more households and businesses pay for electricity based on actual consumption.
It could also improve transparency in electricity transactions, reduce disputes between customers and distribution companies and strengthen consumer confidence in the electricity market.
For the distribution companies, wider metering coverage offers an opportunity to improve revenue assurance by reducing discrepancies between electricity supplied, billed and paid for.
However, the effectiveness of the intervention will depend on the number of meters actually installed, the quality of the equipment and the ability of DisCos to maintain accurate customer and consumption records.
The latest approval builds on previous government and regulatory interventions to address the country’s metering deficit and reduce the financial burden of meter acquisition on electricity consumers.
In March 2026, NERC directed distribution companies to reimburse N20.33 billion to customers who had procured meters under the Meter Asset Provider framework.
Earlier, in October 2025, the Federal Government approved N28 billion for distribution companies under the second tranche of the Meter Acquisition Fund to support the procurement and installation of prepaid meters.
The latest N30 billion approval brings the combined value of the two government-backed MAF interventions to N58 billion, excluding the separate N20.33 billion reimbursement directive.
The renewed intervention underscores the importance of metering to the financial sustainability of Nigeria’s electricity market, where inadequate metering has remained a source of consumer complaints, billing disputes and revenue collection challenges.
Ultimately, the success of the N30 billion programme will be measured not by the amount approved or allocated to distribution companies, but by how many previously unmetered customers receive functional meters without paying additional charges before the May 31, 2027 deadline.
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