The Nigerian Electricity Regulatory Commission (NERC) has authorised the disbursement of ₦30 billion to electricity distribution companies (DisCos) for the procurement and installation of meters. This funding is being released under the Meter Acquisition Fund (MAF) Tranche C scheme to address the ongoing metering deficit in the power sector.
According to Order No NERC/2026/121, issued on Monday, the disbursement to electricity distribution companies (DisCos) for the procurement and installation of meters specifically targets the provision of free meters to all remaining unmetered consumers in the Band A category.
The move is intended to improve revenue collection efficiency and eliminate the reliance on estimated billing for high-revenue customers. Band A consumers, who receive a minimum of 20 hours of electricity supply per day, are subject to higher tariffs, making their accurate metering a priority for the financial stability of the electricity value chain.
Focus on high-revenue Band A consumers
The decision to prioritise Band A customers follows years of struggle within the Nigerian electricity sector to achieve full metering coverage. While the MAF scheme is designed to assist DisCos in reducing the gap between energy supplied and revenue collected, the focus on high-voltage consumers is a strategic attempt to recover lost revenue from the most profitable segment of the market.
This latest intervention comes as NERC data previously indicated that over 5 million electricity consumers in Nigeria are still without meters. By focusing on Band A, the regulator aims to stabilise the cash flow of DisCos, which in turn is expected to support the overall health of the national grid.
The MAF Tranche C scheme operates by providing DisCos with the necessary capital to purchase meters in bulk, thereby reducing the cost per unit and facilitating faster deployment to consumers. For the unmetered customers in the Band A bracket, these meters are to be provided at no cost, fulfilling a regulatory requirement intended to protect consumers from arbitrary billing practices.
Industry observers note that while the ₦30 billion allocation is a significant step, the total number of unmetered consumers across all bands remains a substantial challenge for the industry. The success of this tranche will depend on the speed at which DisCos can translate the funds into physical installations and whether the procurement process meets the technical standards set by NERC.
DisCos are now expected to commence the procurement process and provide NERC with detailed timelines for the deployment of the new meters to the identified Band A consumers.
