NERC Approves ₦28bn for Free Metering of Band A Customers in Second Phase of Meter Acquisition Fund

The Nigerian Electricity Regulatory Commission (NERC) has approved the release of ₦28 billion to electricity distribution companies (DisCos) for the second phase of the Meter Acquisition Fund (MAF) scheme. The funds are earmarked for the free metering of all remaining unmetered Band A customers under the Presidential Metering Initiative, which aims to bridge Nigeria’s estimated seven million-meter shortfall.

According to NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund, which took effect on October 6, 2025, the commission stated that the ₦28bn tranche would also support efforts to reduce the metering gap for customers under Tariff Band B. The directive, signed by NERC Vice Chairman Dr. Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, emphasized that all meters provided under this phase would be completely free for customers.

The allocation will be shared among the 11 DisCos based on their respective market contributions. Ikeja Electric tops the list with ₦5.47bn, followed by Eko DisCo with ₦4.36bn, Ibadan DisCo with ₦4.26bn, and Abuja DisCo with ₦3.31bn. Others include Jos with ₦794m and Yola with ₦231m. NERC explained that the initiative would accelerate meter deployment, enhance service quality, and curb energy theft and collection losses.

Under the new framework, DisCos must commence meter procurement within 10 days of the order’s effective date and submit their chosen Meter Asset Providers (MAPs) to NERC for approval within 15 days. Once verified, MAPs are expected to deliver all contracted meter stock within seven days, with strict penalties for any delays. The commission directed that installations funded under Tranche B must be completed by December 31, 2025.

NERC noted that the MAF scheme was established to address the financial constraints of DisCos, which have struggled to obtain funding for metering due to poor creditworthiness. It added that the first phase of the scheme, worth ₦21bn, concluded in June 2025. With the new ₦28bn tranche, the commission projects that all Band A customers will be fully metered by the end of 2025, marking a significant step toward ending estimated billing and achieving greater transparency in Nigeria’s power sector.