NERC approves N28bn for free metering of Band A Customers under Tranche B scheme

The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of ₦28 billion to electricity distribution companies for the second phase of the Meter Acquisition Fund (MAF) scheme.

The fund will be used to provide free meters to all unmetered Band A customers across the country.

The directive, contained in NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund, took effect from October 6, 2025. It is part of the Presidential Metering Initiative, which seeks to bridge Nigeria’s seven million-meter deficit.

According to the order signed by NERC Vice Chairman, Dr. Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, the ₦28bn tranche is intended to complete the metering of all unmetered Band A customers while fast-tracking the closure of the gap for Band B customers.

“The commission has further approved the deployment of ₦28,000,000,000 for Tranche B of the MAF Scheme. 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,” NERC stated.

The 11 distribution companies will share the funds based on their market contributions. Ikeja Electric gets the highest allocation of ₦5.47bn, followed by Eko DisCo (₦4.36bn), Ibadan DisCo (₦4.26bn), and Abuja DisCo (₦3.31bn). Yola and Jos DisCos will receive ₦231m and ₦794m respectively.

The commission emphasised that all meters procured under the scheme must be provided at no cost to customers, adding that the initiative aims to improve service delivery, reduce energy theft, and enhance revenue collection.

Tranche B follows the completion of the first ₦21bn phase, which ended on June 30, 2025. That phase was funded from the national electricity market’s accrued revenue.

Under the new framework, NERC has set strict timelines for procurement and installation. Distribution companies must begin procurement within 10 days of the order’s effective date and submit their selected Meter Asset Providers (MAPs) to NERC within 15 days for approval.

Once approved, MAPs must deliver 100 per cent of the contracted meter stock within seven days to the DisCos’ warehouses. Failure to meet the deadline will result in the transfer of the supply to another MAP.

NERC also directed that 60 per cent of the payment will be released after verification of delivery, while the remaining 40 per cent will be paid only after installation is confirmed. DisCos will face penalties if installation delays are caused by their lapses, such as network clearance or inaccurate customer data.

The regulator set December 31, 2025, as the deadline for completing all installations under Tranche B.

NERC noted that the MAF was established to help DisCos overcome their credit challenges that hinder meter procurement and infrastructure development. Despite previous programs such as the Meter Asset Provider Regulations (2018) and the National Mass Metering Regulations (2021), the country still has over seven million unmetered customers.

By the end of 2025, NERC expects all Band A customers to be fully metered, marking a major step toward eliminating estimated billing and improving accountability in the power sector.

As of June 2025, NERC data showed that 6,422,933 customers had been metered, raising Nigeria’s national metering rate from 53.78 per cent in May to 54.33 per cent, while total active electricity customers increased to 11,821,194.