NERC Approves ₦30 Billion for Free Electricity Meters as Nigeria Targets Metering Gap

ABUJA, Nigeria — The Nigerian Electricity Regulatory Commission has approved ₦30 billion for the third tranche of the Meter Acquisition Fund, in a renewed effort to close Nigeria's electricity metering gap and reduce consumers' exposure to estimated billing.

The funding, approved under Order No. NERC/2026/121, will be allocated among Nigeria's 11 electricity distribution companies, or DisCos, according to their respective contributions to the Meter Acquisition Fund.

The latest tranche is intended to provide free electricity meters to all remaining unmetered customers in the Band A category while accelerating meter installation for customers in Band B. NERC said the distribution of meters should also be equitable across states within each DisCo's franchise area.

Free Meters for Customers

One of the most important requirements of the programme is that meters supplied under the fund must be provided free of charge to customers.

NERC warned that the cost of meters installed through the Meter Acquisition Fund must not be transferred to electricity consumers. Every meter deployed under the programme is also required to display the name of the relevant distribution company, the applicable Meter Acquisition Fund tranche and the words "NOT FOR SALE."

The requirement is intended to improve transparency and prevent customers from being charged for equipment financed through the intervention.

The new funding forms part of the broader Presidential Metering Initiative, which seeks to reduce the country's persistent metering deficit and improve accountability in the electricity distribution system.

May 2027 Deadline

NERC has directed the distribution companies to complete all meter installations funded under Tranche C on or before May 31, 2027.

The regulator also established rules for how the companies should procure meters. DisCos must conduct transparent procurement exercises involving eligible local meter manufacturers and assemblers, as well as Meter Asset Providers with verified meter stocks.

To strengthen accountability, payments to selected providers will be made in two stages. Seventy per cent will be released after the delivery of meter stocks has been verified, while the remaining 30 per cent will be paid after complete installation has been confirmed.

This structure is designed to reduce the risk of suppliers receiving full payment before the meters are actually installed.

Building on Earlier Funding

The ₦30 billion approval represents the third tranche of the Meter Acquisition Fund.

Previous approvals of approximately ₦21 billion under Tranche A and ₦28 billion under Tranche B brought total approved funding under the scheme to about ₦79 billion, according to recent reports.

Despite earlier interventions, millions of Nigerian electricity customers remain without meters, leaving many dependent on estimated bills and contributing to disputes between consumers and electricity distribution companies.

NERC hopes the latest funding will accelerate the closure of this gap, particularly among customers receiving higher levels of electricity supply.

Why Metering Matters

Electricity meters are important for both consumers and distribution companies.

For consumers, accurate metering can provide greater confidence that they are being charged for the electricity they actually use. It can also reduce disputes linked to estimated billing.

For distribution companies, wider metering can improve revenue collection and reduce commercial losses. More accurate consumption data can also help electricity companies better manage their networks and plan investments.

The Meter Acquisition Fund is therefore intended to address both consumer protection and the financial sustainability of Nigeria's electricity sector.

NERC said the programme includes monitoring, reporting and evaluation requirements for the fund manager, distribution companies and participating meter providers. All supply and installation contracts must also be filed with the Commission.

Implementation Will Be Key

The approval of ₦30 billion provides new funding for Nigeria's metering drive, but the success of the programme will depend on whether the meters are procured and installed within the required timeframe.

NERC has made clear that the programme is intended to deliver actual meters to customers—not simply approve funding.

With the May 31, 2027 deadline now in place, attention will turn to the 11 distribution companies and their ability to carry out transparent procurement and complete installations across their respective service areas.

For Nigerian electricity consumers who remain unmetered, the new tranche offers the prospect of greater protection from estimated billing. The next challenge will be ensuring that the ₦30 billion allocation is translated into meters that are actually delivered and installed, free of charge, across the country.