BUSINESS
NERC Approves N30bn Fund to Provide Free Electricity Meters, Sets May 2027 Deadline
The Nigerian Electricity Regulatory Commission (NERC) has approved N30 billion for the third tranche of the Meter Acquisition Fund (MAF) to provide free electricity meters to all remaining unmetered Band A customers and accelerate metering for Band B consumers.
The approval, contained in Order No. NERC/2026/121, took effect on November 2, 2026.
Under the arrangement, the N30 billion will be distributed among the 11 electricity distribution companies (DisCos) based on their respective contributions to the fund.
NERC said the initiative was aimed at closing the country’s metering gap through the equitable distribution of meters across states within the operational areas of the distribution companies.
The commission directed the DisCos to adopt transparent procurement processes involving eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) with verified meter stocks.
It added that maximum procurement prices had been determined using the median national MAP online bid prices recorded during the September 2026 bidding cycle.
According to the order, payments to selected meter providers will be made in two instalments, with 70 per cent paid after verification of meter stock delivery and the remaining 30 per cent released following confirmation of successful installation.
NERC stressed that all meters provided under the programme must be installed free of charge, warning electricity distribution companies against charging customers for the meters.
It also directed that every meter supplied under the scheme must prominently display the name of the relevant DisCo, the applicable MAF tranche and the inscription, “NOT FOR SALE”.
The commission further stated that distribution companies must bear the cost of relocating existing customers’ connection points where such relocation is initiated for revenue protection purposes.
It warned that sanctions would be imposed on DisCos whose defaults cause delays or hinder meter installation. To ensure accountability,
NERC said the order established monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.
The Commission further directed that all supply and installation contracts under the third tranche be submitted to the commission for documentation.
NERC set May 31, 2027, as the deadline for completing the supply and installation of all meters under the programme.
The commission urged all electricity distribution companies and other stakeholders to comply with the directive, describing the initiative as a major step towards addressing the country’s metering deficit, improving electricity service delivery and protecting consumers from estimated billing.
