Abuja—The Nigerian Electricity Regulatory Commission (NERC) has approved the immediate disbursement of N28 billion to electricity distribution companies (DisCos) under the second phase of the Meter Acquisition Fund (MAF) scheme. The funds are designated for the free metering of all outstanding unmetered Band A customers, with a plan to expedite the closure of the metering gap for Band B customers.
The directive, cited as ‘NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund,’ took effect on October 6, 2025. It forms part of the Presidential Metering Initiative aimed at tackling Nigeria’s estimated seven-million-meter deficit.
In the new order, signed by NERC Vice Chairman, Dr. Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, the commission allocated the N28 billion “in proportion to the respective contributions of the DisCos.”
Allocation Breakdown
The N28 billion will be shared among the 11 distribution companies based on their market contributions. Ikeja Electric received the highest allocation of N5.47 billion, followed by Eko DisCo with N4.36 billion, Ibadan DisCo with N4.26 billion, and Abuja DisCo with N3.31 billion. Yola and Jos DisCos received the lowest amounts, with N231 million and N794 million respectively.
NERC stated that all meters procured and installed under the MAF framework shall be provided at no cost to the customers.
Fast-Tracked Deployment Timelines
Tranche B builds on the first N21 billion tranche, which ended on June 30, 2025, and saw N21.86 billion accrued and deployed for meter procurement.
To accelerate deployment, NERC has imposed strict deadlines on the DisCos:
Procurement and Selection: DisCos must conduct a transparent procurement process for Meter Asset Providers (MAPs) within 10 days and submit their selected MAPs and meter inventory details to NERC for ‘No-Objection’ approval within 15 days of the order’s effective date.
Delivery: MAPs must deliver 100 per cent of the contracted meter stock to DisCos’ warehouses for verification within seven days of approval. Failure to meet this deadline will allow the supply of outstanding meters to be opened to another MAP.
Installation Deadline: All installations funded under Tranche B must be completed by December 31, 2025.
Sanctions for Delays
The commission warned that payment to MAPs will be staggered: 60 per cent will be released by the Fund Manager upon meter delivery, with the remaining 40 per cent paid only after full installation is verified.
Furthermore, NERC threatened sanctions for DisCo-induced delays. “Where the non-installation of meters is directly attributable to DisCo’s failure,” the company “shall be liable to a penalty equivalent to the total cost of the uninstalled meters.”
NERC noted that the MAF was created to bypass DisCos’ poor creditworthiness, which has historically hampered their ability to secure loans for metering. The commission anticipates that the new tranche will ensure all Band A premium customers are fully metered by the end of 2025, moving Nigeria closer to eliminating estimated billing.
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