The Nigerian Electricity Regulatory Commission (NERC) has sanctioned the release of N28 billion to Nigeria’s electricity distribution companies (DisCos) under the Tranche B of the Meter Acquisition Fund (MAF) scheme. This significant financial intervention is specifically earmarked for the procurement and installation of prepaid meters for customers at no charge, forming a key part of the federal government’s Presidential Metering Initiative, which aims to address the country’s persistent metering gap.
The commission’s directive is detailed in Order No: NERC/2025/107, which officially took effect from 6 October 2025.NERC has stipulated that the funds will be distributed among the eleven distribution companies in proportion to their respective contributions to the market settlement.
Under the new order, the N28 billion is primarily targeted at metering all outstanding unmetered customers classified under Tariff Band A, while also working to expedite the closure of the metering gap for customers in Tariff Band B. The directive mandates DisCos to commence a transparent procurement process for selecting Meter Asset Providers (MAPs) within ten days of the order’s effective date, ensuring the chosen providers have verified, ready-for-deployment meter stock. The DisCos are also required to submit their selected MAPs to NERC for “No-Objection” approval within fifteen days.
The regulatory body has imposed strict penalties and deadlines to ensure the efficient deployment of the meters. DisCos are required to complete all installations funded under the Tranche B scheme by 31 December 2025. Furthermore, to support the local economy, the commission has enforced a minimum 30 per cent local content threshold for all MAPs participating in the scheme. Non-compliance, such as installation delays directly attributable to a DisCo’s failure, will result in a penalty equivalent to the total cost of the uninstalled meters, which will be deducted from the DisCo’s approved administrative operating expenditure.
The N28 billion Tranche B follows the successful implementation of the initial Tranche A, which saw N21 billion approved for meter purchases, concluding on 30 June 2025. NERC has stated that the MAF was created to mitigate the impact of DisCos’ limited creditworthiness on metering deployment. With Nigeria’s metering gap still exceeding seven million customers, the commission expects this new tranche to play a critical role in eliminating estimated billing, ensuring accurate energy accountability, and addressing the persistent issue of billing disputes that plague the power sector.
