Nigerian Regulator Approves N30 Billion for Electricity Metering Initiative

The Nigerian Electricity Regulatory Commission (NERC) has authorized a 30 billion naira disbursement to the nation's eleven electricity distribution companies (DisCos) to accelerate the installation of meters. This initiative, designated as Tranche C of the Meter Acquisition Fund, became effective on November 2, 2026, and is part of a broader federal effort to address the country's persistent electricity metering gap.

Under the new order, the funds are specifically allocated to provide free meters to all remaining unmetered customers in the Band A category while simultaneously increasing the pace of installations for Band B consumers. The commission emphasized that the distribution of these meters must be equitable across all states within the respective franchise areas of the distribution companies.

To ensure transparency and accountability, NERC has mandated that all meters supplied through this program must be provided to consumers at no cost. Each unit must clearly display the name of the relevant distribution company, the specific tranche of the fund, and the inscription 'NOT FOR SALE.' The regulator warned that any attempt by distribution companies or their agents to charge customers for these meters will be strictly prohibited.

The procurement process for these meters requires distribution companies to engage with eligible local manufacturers, assemblers, and meter asset providers. NERC has established maximum procurement prices based on the median national bid figures from the September 2026 cycle. Furthermore, the commission has implemented a two-stage payment structure: 70 percent of the contract sum will be released upon verified delivery of the meter stock, with the remaining 30 percent payable only after the installation is confirmed.

The order also addresses infrastructure maintenance and revenue protection. If a distribution company decides to relocate an existing customer's connection point, the company is required to bear the associated costs rather than passing them on to the consumer. The regulatory body has set a firm deadline of May 31, 2027, for the completion of all meter installations under this tranche, with sanctions threatened for any distribution companies that fail to meet these requirements.

This latest allocation brings the total funding approved under the Meter Acquisition Fund to 79 billion naira, following previous tranches of 21 billion and 28 billion naira. NERC stated that these measures are essential to reducing commercial losses, improving service delivery, and protecting electricity consumers from the inaccuracies often associated with estimated billing practices.