The Nigerian Electricity Regulatory Commission (NERC) has approved the disbursement of N28 billion to electricity distribution companies (DisCos) for the procurement and installation of meters under the Meter Acquisition Fund (MAF) tranche B scheme.
The fund, which serves as a financial intervention to support the power distribution firms, is designed to accelerate the rollout of prepaid meters to customers at no cost, bridge the metering gap, and reduce billing disputes in the power sector.
According to Order No: NERC/2025/107, which took effect from October 6, the intervention aims to provide a “credible revenue stream” from market collections that can leverage long-term financing for utilities with limited creditworthiness.
“DisCos shall utilise NGN28,000,000,000 (Twenty-Eight Billion Naira only) of the MAF scheme for Tranche B apportioned in accordance with their respective contributions as at the July 2025 market settlement and detailed in Schedule 1, for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas,” NERC said.
NERC directed all DisCos to, within 10 days from the effective date of the Order, conduct a transparent procurement process for selecting Meter Asset Providers (MAPs) that possess verified, ready-for-deployment meter stock.
The selected MAPs must be submitted to the commission within 15 days for “No-Objection” approval, along with detailed meter inventory, including types, brands, serial numbers, and locations.
NERC also mandated MAPs participating in the scheme to meet a minimum 30 percent local content threshold, backed by a memorandum of understanding with local manufacturers or assemblers.
‘Initiative Will Mitigate DISCOS’ Inability To Raise Funds’
NERC said the initiative would mitigate the inability of DisCos to raise funds through debt or equity for metering investments, leading to a national metering gap of over seven million customers.
Under the directive, DisCos are required to integrate their systems with the fund manager’s IT platform, complete know-your-customer (KYC) documentation, and confirm readiness for metering at all designated customer locations.
“The Commission seeks to establish a clear and transparent framework for the implementation of Tranche B of the MAF scheme,” NERC added.
“This includes strict monitoring, reporting, and evaluation requirements to ensure accountability, efficiency, and transparency in the deployment of MAF-funded meters.
“Where the selected MAP fails to deliver the contracted meter quantities within the seven-day timeframe, supply of the outstanding meter quantities shall be opened up to another MAP on a first-come, first-served basis.”
The commission further directed that once meters are delivered and verified, the fund manager will release 60 percent of the contract sum, while the remaining 40 percent will be paid only after full installation is verified.
NERC warned that distribution companies would be penalised if installation delays arise from their own failures, such as not providing network clearance or accurate customer information.
“Where the non-installation of meters is directly attributable to DisCo’s failure, such DisCo shall be liable to a penalty equivalent to the total cost of the uninstalled meters. A penalty shall be deducted from the DisCo’s approved Administrative Operating Expenditure,” the order added.
The regulator gave DisCos until the end of the year to complete all installations funded under Tranche B.
“The installation of meters shall be completed by 31 December 2025,” the commission said.
The MAF is managed by a fund manager under terms negotiated by the DisCos and approved by the commission.
The new initiative builds on the Presidential Metering Initiative (PMI), launched earlier this year by the federal government to deliver 10 million meters nationwide by 2030
