The Nigerian Electricity Regulatory Commission (NERC) has approved an additional N30 billion for the 11 electricity Distribution Companies (DisCos) to procure and install free meters for unmetered customers, bringing total approvals under the Meter Acquisition Fund (MAF) scheme to N79 billion.

The latest approval, which represents the third tranche of the fund, is aimed at accelerating efforts to bridge Nigeria’s metering gap, reduce revenue losses and improve service delivery in the electricity distribution sector.

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The Commission had earlier approved N21 billion under Tranche A and N28 billion under Tranche B, bringing previous approvals to N49 billion.

In Order No. NERC/2026/121, effective November 2, 2026, the regulator said the latest N30 billion would be allocated among the 11 DisCos in proportion to their respective contributions to the fund as of the July 2026 market settlement.

According to the order, the funds would be used to meter all remaining unmetered Band A customers and accelerate the closure of the metering gap among customers classified under Band B.

NERC specifically directed the DisCos to deploy the funds for the “procurement and installation of meters for unmetered Band ‘A’ and ‘B’ Customers within their franchise areas.”

The intervention comes amid a national metering rate of 63.10 per cent as of August 2026, with 8.05 million of the 12.75 million active electricity customers having meters.

Data from the Commission showed that approximately 4.7 million active customers were still without meters.

Explaining the objectives of the MAF scheme, NERC said the fund was designed to accelerate meter deployment, close the existing metering gap, reduce commercial and collection losses for DisCos, enhance service quality and improve customer satisfaction.

The regulator reiterated that all meters procured and installed under the scheme must be provided to customers free of charge.

It stressed that “all meters procured and installed under the MAF framework shall be provided to customers at no cost.”

The Commission also directed that every meter must prominently display the name of the relevant DisCo, the applicable MAF tranche and the inscription, “NOT FOR SALE”.

Under the order, the DisCos are required to conduct transparent procurement processes within 10 days to select eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) with verified meter stocks ready for deployment.

They must also submit details of their selected providers and available meter inventories, including meter types, brands, serial numbers and locations, to the Commission within 15 days for a no-objection approval.

NERC adopted the median national MAP online bid price from the September 2026 bidding cycle as the maximum procurement price for each meter category.

The regulator further stipulated a two-stage payment arrangement for selected meter providers, with 70 per cent of the contract sum payable upon verified delivery of meter stocks and the remaining 30 per cent after confirmation of complete installation.

Selected providers are expected to deliver all contracted meters to the respective DisCos’ warehouses within seven days of obtaining the Commission’s no-objection approval.

The order also provides that where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost must be borne by the distribution company.

NERC warned that sanctions would apply where defaults by DisCos impede meter installation. It also directed the Fund Manager, DisCos and participating meter providers to comply with prescribed monitoring, reporting and evaluation requirements.

The Commission set May 31, 2027, as the deadline for completing all meter installations under the third tranche of the scheme. (Vanguard)