The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has approved the release of N28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.
Gatekeepers News reports that the intervention aims to improve Nigeria’s poor metering coverage, which has long fueled commercial losses, estimated billing disputes, and deepening liquidity challenges across the power sector.
According to Order No: NERC/2025/107, published on NERC’s website, the MAF provides a dedicated financial mechanism to accelerate meter deployment for unmetered customers at no cost, while ensuring a sustainable revenue structure that supports long-term financing for DisCos.
N28bn Allocation to Be Distributed Among DisCos
Under the new directive, NERC instructed all DisCos to deploy the N28 billion fund towards metering Band A and Band B customers within their networks. The allocation will be based on each DisCo’s market collection share as of July 2025.
DisCos have been given 10 days from the effective date of the order (October 6, 2025) to conduct transparent procurement processes and select Meter Asset Providers (MAPs) with verified, ready-for-deployment stock.
Selected MAPs must be submitted to NERC within 15 days for “No-Objection” approval.
To support local content, the commission mandated a minimum 30% domestic manufacturing requirement for all participating MAPs, backed by formal agreements with local meter producers or assemblers.
Penalties for Delays and Implementation Timeline
Under the Tranche B framework, 60% of contract funds will be disbursed to MAPs after verified meter delivery, while the remaining 40% will be paid upon confirmed installation.
NERC warned that any DisCo responsible for delays—whether due to inadequate network readiness or inaccurate customer data—would face penalties equivalent to the cost of the uninstalled meters.
All installations under Tranche B are expected to be completed by December 31, 2025.
Nigeria’s Persistent Metering Gap
Nigeria’s metering gap remains above seven million customers, among the largest in Africa. The shortfall has driven energy theft, weak revenue collection, and widespread billing complaints, worsening the liquidity crisis in the electricity market.
Previous interventions—including the Meter Asset Provider (MAP) programme launched in 2018 and the National Mass Metering Programme (NMMP) under the Central Bank of Nigeria—recorded partial success but were hindered by financing and implementation bottlenecks.
The newly strengthened Meter Acquisition Fund seeks to address these issues by leveraging market-based funding mechanisms tied to DisCos’ revenue collections, rather than relying on direct government or CBN financing.
Impact and Outlook
If implemented effectively, the MAF could enhance cash flow for DisCos, reduce the sector’s liquidity gap, and rebuild consumer confidence in the billing system. However, its success will depend on transparency, regulatory oversight, and timely execution by DisCos.
According to NERC, DisCos installed 225,631 meters in the second quarter of 2025 — a 20.55% increase from the first quarter’s 187,161 installations. Of this total, 147,823 meters (65.52%) were installed under the MAP framework, 65,315 under the MAF scheme, 12,259 through vendor-financed initiatives, and 234 under DisCo-financed arrangements.
