The Nigerian Electricity Regulatory Commission (NERC) has approved the release of ₦28 billion to electricity distribution companies (DisCos) under the second phase of the Meter Acquisition Fund (MAF) scheme.
The directive, contained in NERC Order No: 2025/10 — Order on the Operationalisation of Tranche B of the Meter Acquisition Fund, took effect on October 6.
It forms part of the presidential metering initiative designed to bridge Nigeria’s estimated seven million meter deficit.
According to the order, signed by NERC vice chairman Musiliu Oseni and commissioner for legal, licensing and compliance Dafe Akpeneye, the second tranche will prioritise metering of all unmetered Band A customers while accelerating efforts to close the metering gap among Band B customers.
It stated, “The commission has further approved the deployment of the sum of NGN28,000,000,000 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.”
It added further that “DisCos shall utilise N28bn of the MAF scheme for Tranche B, apportioned in accordance with their respective contributions for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.”
The N28bn will be shared among the 11 distribution companies in proportion to their market contributions.
Ikeja Electric will receive the highest allocation of N5.47bn, followed by Eko DisCo with N4.36bn, Ibadan DisCo with N4.26bn, and Abuja DisCo with N3.31bn. Yola got N231m, and Jos received N794m.
The commission said the initiative was designed to accelerate meter deployment, enhance service quality, and reduce energy theft and collection losses.
According to the order, all the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers.
It explained that Tranche B builds on the first N21bn tranche, which ended on June 30, 2025, under which the commission approved meter purchases from funds accrued through the national electricity market.
“As of the April 2024 market settlement cycle, the sum of N21.86bn had accrued and was made available for the procurement of meters under the first tranche of the MAF scheme,” the commission noted.
Under the new framework, NERC imposed strict timelines for procurement, delivery, and installation.
The order mandated DisCos to begin the procurement process within 10 days of the order’s effective date and to submit their selected meter providers to NERC within 15 days for approval.
It noted, “DisCos shall, within 10 days from the effective date of this order, conduct a transparent procurement process for the selection and execution of a contract with MAPs with verified and ready for deployment meter stock for the metering of end use customer meters under the MAF scheme.
“DisCos shall, no later than 15 days from the date of the order, submit to the commission a list of their selected MAPs and details of meter inventory, including meter types, brand names, serial numbers, and meter location, to obtain a no objection approval from the commission.”
Following NERC’s approval, MAPs are required to supply the full quantity of contracted meters to the DisCos warehouses within seven days for verification.
The commission warned that any MAP failing to meet the seven day delivery timeline would forfeit the outstanding contract quantity, which would then be reallocated to another provider on a first come, first served basis.
According to the directive, once the delivered meters are verified, the Fund Manager will release 60 per cent of the contract payment, while the remaining 40 per cent will be disbursed only after the successful completion and verification of installations.
NERC also cautioned that DisCos would face penalties if delays in installation are due to their own negligence, such as failure to grant network clearance or provide accurate customer information.
The order stated, “Where non installation of meters is directly linked to a DisCo’s failure, the company shall pay a penalty equivalent to the total cost of the uninstalled meters.
“Such penalties will be deducted from the DisCo’s approved Administrative Operating Expenditure.”
The commission directed all DisCos to ensure that meter installations funded under Tranche B are completed by December 31.
NERC explained that the meter acquisition fund was established to address the financial constraints faced by DisCos, whose limited creditworthiness has hindered access to financing for metering and infrastructure expansion.
It added that despite previous interventions including the Meter Asset Provider Regulations (2018) and the MAP & National Mass Metering Regulations (2021) the country still has a metering deficit exceeding seven million customers.
The commission emphasised the urgency of closing the metering gap for all Band A customers to enhance revenue protection and support efficient energy management.
With the release of the new ₦28 billion tranche, NERC projects that all premium Band A customers will be fully metered by the end of 2025 a major step toward eliminating estimated billing and ensuring greater transparency and accountability in electricity consumption.
As of June, NERC data shows that 6,422,933 electricity customers nationwide had been metered, increasing the national metering rate from 53.78 per cent in May to 54.33 per cent in June.
The total number of active electricity customers also rose slightly from 11,784,842 in May to 11,821,194 in June
