By Joycelyn Ellakeche Adah
The Nigerian Electricity Regulatory Commission (NERC) has approved ₦28 billion from the Meter Acquisition Fund (MAF) to rapidly close the nation’s seven-million-metering gap and protect power sector revenue.
Persecondnews reports that effective October 6, 2025, a new NERC order mandates DisCos to use this Tranche B funding to install prepaid meters for all unmetered Band A and Band B customers.
NERC clarified that these meters will be provided “at no cost to the customers,” aiming to ensure fair billing and boost customer satisfaction.
The order, signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance Dafe Akpeneye, marks the commencement of the second phase of the metering programme, following the successful completion of Tranche A, which deployed ₦21 billion for meter installations by June 2025.
NERC noted that despite earlier interventions, the national metering gap remains significant, largely due to the “inability of Distribution Companies to secure long-term financing for the acquisition and deployment of end-use meters.”
The MAF, it said, was therefore created to “offset the impact of DisCos’ limited creditworthiness on metering deployment across the Nigerian Electricity Supply Industry (NESI).”
The ₦28 billion fund will be disbursed in proportion to each DisCo’s market contribution and managed by an independent Fund Manager under the Commission’s supervision.
NERC explained that Tranche B would also support the Presidential Metering Initiative (PMI), which aims to leverage smart metering technology and data analytics to modernize electricity distribution.
The order further directs DisCos to complete a transparent procurement process within 10 days of the effective date and to submit their selected Meter Asset Providers (MAPs) for NERC’s “No Objection” approval.
All installations, the Commission insists, must be completed by December 31, 2025.
Quoting from the order, NERC stated:
“DisCos shall utilise ₦28,000,000,000 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 Commission also introduced a 30 percent local content requirement, compelling MAPs to partner with local manufacturers or assemblers.
According to the directive: “Eligible MAPs shall submit evidence in support of the fulfilment of a minimum threshold of 30% local content.”
In a move to ensure efficiency and accountability, the regulatory order requires DisCos to provide real-time data access through an Application Programming Interface (API) and submit audited performance reports under the Uniform System of Accounting.
NERC also warned that any DisCo whose failure delays meter installation or data submission will be penalized.
“Where the non-installation of meters is directly attributable to DisCo’s failure to provide required network clearance or accurate KYC information, such DisCo shall be liable to a penalty equivalent to the total cost of the uninstalled meters,” the order stated.
Additionally, each MAP is required to present a Performance Bond equivalent to 5% of the total contract value, valid for at least 90 days, to guarantee project completion.
With Tranche B now activated, NERC says the initiative represents a decisive step toward eliminating estimated billing and restoring public confidence in Nigeria’s power sector.
“All parties under the MAF scheme shall exhibit the highest degree of public trust and ethical standards,” the commission declared, underscoring its commitment to transparency and consumer protection.
The rollout is expected to not only safeguard revenues for utilities but also deliver long-awaited fairness to electricity consumers across the country.
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