The Nigerian Electricity Regulatory Commission has approved N30bn for the third phase of the Meter Acquisition Fund to provide prepaid meters for unmetered Band A customers and increase metering coverage for Band B consumers.
The commission has directed electricity distribution companies to install all meters under the initiative by May 31, 2027, stressing that beneficiaries must not pay for the meters.
NERC disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, which took effect on November 2, 2026.
The regulator announced the development through its official X handle on Tuesday.
In the order, the commission said the N30bn would be distributed among the 11 electricity distribution companies based on their respective contributions to the fund.
It stated, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.
“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund.
“The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”
The initiative is part of the Federal Government’s Presidential Metering Initiative, designed to address Nigeria’s electricity metering deficit, reduce estimated billing and promote transparency in the power sector.
Under the programme, DisCos are expected to carry out transparent procurement processes involving qualified Local Meter Manufacturers and Assemblers, as well as Meter Asset Providers with verified meter stocks.
NERC said it had set maximum procurement prices using the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding exercise.
To ensure accountability, the commission introduced a two-stage payment system for meter suppliers.
Under the arrangement, 70 per cent of contract payments will be made after the verification of delivered meter stocks, while the remaining 30 per cent will be released following confirmation that the meters have been fully installed.
The regulator reiterated that meters supplied under the fund must be installed free of charge, warning electricity distribution companies and their agents against selling the devices to consumers.
It also mandated that each meter supplied under the programme carry the name of the relevant DisCo, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.
NERC further clarified that where a distribution company relocates a customer’s existing connection point for revenue protection purposes, the operator must bear the cost of the relocation instead of transferring it to the consumer.
The commission warned that distribution companies could face sanctions for defaults that hinder or delay meter installations, emphasising the need to meet the stipulated deadline.
To ensure the proper use of funds, NERC also established monitoring, reporting and evaluation requirements for the Fund Manager, participating DisCos and meter providers.
All supply and installation contracts executed under Tranche C are to be submitted to the commission.
The latest intervention comes amid continued complaints by electricity consumers over estimated billing, largely linked to the inadequate availability of functioning meters across the country.
Many customers have continued to dispute bills issued by distribution companies, particularly where electricity consumption is calculated without the use of prepaid meters.
NERC said the new order was aimed at accelerating the reduction of the metering gap, improving revenue assurance for distribution companies, enhancing service delivery and safeguarding consumers.
The commission called on all stakeholders to comply with the procurement, installation, reporting and consumer protection provisions of the order.
