NERC approves N28b for DisCos to provide additional free meters to close 7m deficit
By Jeph Ajobaju, Chief Copy Editor
Electricity distribution companies (DisCos) have been granted N28 billion by the Nigerian Electricity Regulatory Commission (NERC) for the second phase of the Meter Acquisition Fund to provide free meters for all Band A customers and begin that for Band B.
The “NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund” took effect from October 6 and forms part of the Presidential Metering Initiative to close an estimated seven million meter deficit.
The directive, signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, said the latest tranche would focus on metering all outstanding unmetered Tariff Band A customers and expedite the closure of the metering gap for customers in Band B.
“The commission has further approved the deployment of the sum of NGN28,000,000,000 for Tranche B of the MAF Scheme,” the directive explained.
“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.
“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.”
The sum is shared among the 11 DisCos in proportion to their market contributions – Ikeja Electric (N5.47 billion), Eko DisCo (N4.36 billion), Ibadan DisCo (N4.26 billion), Abuja DisCo (N3.31 billion), Yola (N231 million), and Jos (N794 million).
The NERC said:
- The initiative is to accelerate meter deployment, enhance service quality, and reduce energy theft and collection losses.
- All meters to be procured and installed under the MAF framework shall be provided at no cost to customers.
- Tranche B builds on the first N21 billion tranche which ended on 30 June 2025, under which meter purchases were approved from funds that 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.
“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.”
“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.”
The NERC directed that once meters are delivered and verified, the Fund Manager will release 60 per cent of the contract sum, and remaining 40 per cent paid after full installation is verified.
“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 installation of meters shall be completed by 31 December 2025.”
The NERC explained that 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.
It noted that despite earlier interventions, such as Meter Asset Provider Regulations 2018 and 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.”
NERC data shows that the number of metered customers nationwide grew to 6,422,933 in June 2025, a 54.33 per cent rise from 53.78 per cent in May.
Total active electricity customers – metered and unmetered – rose from 11,784,842 in May to 11,821,194 in June.
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