By: Goodluck E. Adubazi, Abuja.
The Nigerian Electricity Regulatory Commission (NERC) has approved ₦30 billion for the third tranche of the Meter Acquisition Fund (MAF), directing electricity distribution companies (DisCos) to provide meters to customers free of charge and complete all installations by May 31, 2027.
The directive, which forms part of the Federal Government’s efforts to close Nigeria’s metering gap, is contained in Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, released on Tuesday.
The commission said the order, which took effect on November 2, 2026, establishes a transparent framework for implementing the third tranche of the Presidential Metering Initiative.
Under the arrangement, the ₦30 billion fund will be distributed among Nigeria’s 11 electricity distribution companies in proportion to their respective contributions to the fund.
NERC explained that the funding would prioritise all remaining unmetered Band A customers while accelerating meter deployment for Band B customers.
It added that the distribution of meters must be equitable across states within the respective franchise areas of the electricity distribution companies.
In a strong warning against the commercialisation of meters provided under the initiative, NERC reiterated that all meters procured and installed through the Meter Acquisition Fund must be supplied to electricity consumers free of charge.
The commission directed that every meter must prominently display the name of the relevant distribution company, the applicable MAF tranche and the inscription, “Not for Sale”.
It further clarified that where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost must be borne entirely by the distribution company.
The directive is designed to prevent consumers from being subjected to additional financial burdens for meters funded through the government-backed initiative.
To guarantee transparency and accountability, the commission directed DisCos to conduct open and transparent procurement processes involving eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) with verified meter stocks.
NERC also prescribed maximum procurement prices based on the median national MAP online bid prices recorded during the September 2026 bid cycle.
Under the payment arrangement, participating meter providers will receive their payments in two stages.
“Payment to selected providers shall be made in two stages: 70 per cent upon verified delivery of meter stock and the remaining 30 per cent upon confirmation of complete installation,” the commission stated.
The payment structure is intended to ensure that meter providers are not only held accountable for delivering the equipment but also for completing installations.
The order also introduces sanctions against electricity distribution companies whose defaults or actions impede the timely installation of meters.
To strengthen oversight, NERC said the framework establishes monitoring, reporting and evaluation requirements for the Fund Manager, participating DisCos and meter providers.
It further directed that all supply and installation contracts must be submitted to the commission for regulatory oversight.
NERC emphasised that all meter installations under Tranche C must be completed no later than May 31, 2027.
The commission urged all stakeholders to comply strictly with the provisions of the order, stressing that the initiative represents another major intervention in addressing Nigeria’s longstanding electricity metering challenges.
According to NERC, the programme is expected to accelerate the closure of the national metering gap, improve revenue assurance, enhance electricity service delivery and strengthen consumer protection.
The latest ₦30 billion approval comes as Nigeria continues to pursue reforms in the electricity sector, with inadequate metering remaining a major concern for electricity consumers, particularly those exposed to estimated billing.
With the May 2027 deadline now established, electricity distribution companies face increased regulatory pressure to ensure that eligible customers receive and have their meters installed without payment.
