NERC Approves ₦30bn for Free Electricity Meters, Sets May 2027 Deadline
The Nigerian Electricity Regulatory Commission (NERC) has approved ₦30 billion for the third phase of its Meter Acquisition Fund (MAF), in a renewed effort to address Nigeria’s electricity metering gap and reduce the number of customers relying on estimated billing.
The approval is contained in Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, which took effect on November 2, 2026.
Under the arrangement, the funding will be distributed among Nigeria’s 11 electricity distribution companies (DisCos) according to their respective contributions to the fund. The initiative is designed to provide meters to all remaining unmetered Band A customers while accelerating installations for Band B consumers.
NERC announced the development on November 10, explaining that the latest funding forms part of efforts to improve electricity metering, strengthen accountability in the distribution sector and protect consumers.
How the ₦30 Billion Metering Fund Will Work
According to NERC, electricity distribution companies will be required to conduct transparent procurement processes involving eligible Local Meter Manufacturers and Assemblers as well as Meter Asset Providers with verified meter stocks.
The regulator has also established maximum procurement prices based on median national prices recorded during the September 2026 Meter Asset Provider online bidding exercise.
Payments to selected meter providers will be released in two stages.
Seventy per cent of the payment will be made after verification of delivered meter stocks, while the remaining 30 per cent will be released after confirmation that the meters have been completely installed.
The arrangement is intended to strengthen accountability and ensure that payments are connected to actual delivery and installation.
NERC Says Customers Must Not Pay for the Meters
One of the most important provisions of the new directive is that customers must receive meters supplied under the Meter Acquisition Fund programme free of charge.
NERC has directed that every meter installed under the initiative must carry the name of the relevant electricity distribution company, identify the applicable funding tranche and display the inscription “NOT FOR SALE”.
The commission also clarified that where a distribution company initiates the relocation of an existing customer’s connection point for revenue protection purposes, the company must bear the associated cost.
The order further provides for sanctions where defaults by distribution companies prevent or delay meter installations.
The provisions are particularly important for electricity consumers who have previously faced difficulties accessing prepaid meters or have had concerns about the cost of metering services.
Nigeria Still Has Millions of Unmetered Electricity Customers
Despite ongoing government interventions, Nigeria continues to face a significant electricity metering challenge.
NERC’s July and August 2026 metering factsheet showed that the country had 12,749,789 active electricity customers as of August 2026.
Out of this number, 8,045,565 customers had been metered, representing a national metering rate of 63.10 per cent.
This means approximately 4.7 million active customers were still without meters at the end of August.
The regulator also reported that distribution companies installed 141,746 additional meters during August, compared with 159,980 installations recorded in July.
The figures highlight the scale of the challenge facing Nigeria’s electricity distribution industry and the importance of ensuring that the latest funding translates into actual installations.
For customers without prepaid meters, the continued dependence on estimated billing remains a major concern because electricity charges may be calculated without individual meter readings.
When Will the Free Meter Installation Be Completed?
NERC has directed that all meter supply and installation activities under Tranche C must be completed on or before May 31, 2027.
The commission has also introduced monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.
All supply and installation contracts must be submitted to the regulator as part of the accountability framework.
However, the announcement does not mean that every Nigerian electricity customer will receive a meter immediately.
The programme has specific priorities, beginning with remaining unmetered Band A customers and accelerated installations for Band B customers. The actual deployment will depend on procurement, meter availability and implementation by the relevant distribution companies.
Consumers should therefore contact their electricity distribution companies for information about the implementation in their areas rather than assume that immediate installation is guaranteed.
What Should Electricity Consumers Do?
Electricity consumers who are awaiting prepaid meters should monitor official announcements from their distribution companies and NERC.
Customers should also be cautious about individuals or agents demanding unofficial payments for meters provided under the programme.
Since NERC has expressly stated that meters supplied and installed under the Meter Acquisition Fund must be free, consumers should request official clarification before making any payment connected with the initiative.
Where a customer experiences a metering or billing dispute, NERC’s published guidance provides for complaints to the relevant distribution company, escalation to the nearest NERC Forum Office and further appeal to the commission where necessary. Customers in states with State Electricity Regulatory Commissions should follow the applicable state-level complaint process.
Can the ₦30 Billion Initiative End Estimated Billing in Nigeria?
The latest approval represents another important intervention in Nigeria’s efforts to expand electricity metering.
However, the success of the programme will depend on more than the amount of money approved.
Distribution companies must demonstrate that meters are procured transparently, delivered to the right locations and installed within the stipulated timeframe.
The regulator must also ensure that customers are protected from illegal charges and that the companies responsible for implementation meet their obligations.
With millions of electricity consumers still without individual meters, the May 31, 2027 deadline will be an important test of the effectiveness of the latest intervention.
For Nigerian households and businesses, the real measure of success will not simply be the approval of ₦30 billion, but how many customers eventually receive functioning meters without having to pay for the devices under the programme.
Source: Nigerian Electricity Regulatory Commission (NERC), Order No. NERC/2026/121 and July–August 2026 Metering Factsheet.