In a strategic move aimed at accelerating meter roll-out and closing the existing metering gap in the Nigerian Electricity Supply Industry (NESI), the Nigerian Electricity Regulatory Commission (NERC) has approved the sum of N28 billion for the Distribution Companies (DisCos), to procure and install meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.
NERC gave the approval on Wednesday through an Order on the Operationalization of “Tranche B” of the Meter Acquisition Fund (MAF).
NERC said the funds shall be allocated in proportion to the respective contributions of the DisCos, and are intended to meter all outstanding unmetered Band A customers while also expediting the closure of the metering
gap for customers currently classified under Tariff Band B.
“As of the April 2024 market settlement cycle, the sum of NGN 21,864,851,725 (Twenty-One Billion, Eight Hundred and Sixty-Four Million, Eight Hundred and Fifty-One Thousand, Seven Hundred and Twenty-Five Naira only) had accrued and was made available for the procurement of meters under the first tranche of the MAF scheme.
“The Commission approved the use of the sum of NGN21,000,000,000 (Twenty-One Billion Naira) only from the accrued amount apportioned pro rata to the contributions of the DisCos, for the procurement and installation of meters under Tranche A of the MAF scheme, which concluded on 30 June 2025.
“The Commission has further approved the deployment of the sum of NGN28,000,000,000 (Twenty-Eight Billion Naira) for Tranche B of the MAF
Scheme. These funds shall be allocated in proportion to the respective contributions of the DisCos, and are intended to meter all outstanding
unmetered Band A customers while also expediting the closure of the metering
gap for customers currently classified under Tariff Band B,” the Order read.
NERC explained that it was due to the inability of the DisCos to secure financing, whether through debt or additional equity, for the acquisition and deployment of end-use meters and other critical capital investments that it created the MAF.
The Commission recalled that it introduced the Meter Asset Provider (“MAP”) Regulations 2018 and subsequently, the Meter Asset Provider and National Mass Metering Regulations (“MAP&NMMR”) in 2021 to address metering challenges in the
NESI.
According to NERC, these Regulations introduced multiple options for metering end-use customers. However, despite these significant interventions, the national metering gap persists and currently exceeds seven million.
The Commission through this new order mandates the DisCos to utilise the N28 billion of the MAF scheme for Tranche B apportioned in accordance with their respective contributions as at the July 2025 market settlement.
It said all the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers.
NERC, in the order directed that the installation of meters shall be completed by 31 December 2025.
It said all parties under the MAF scheme shall exhibit the highest degree of public trust and ethical standards and shall not engage in any conduct that may constitute unfair practice or conflict of interest.
NERC said the DisCos and MAPs shall ensure full compliance with the FM’s Operational Process Manual for Tranche В.
The Commission said it shall adopt the median DisCo MAP online bid prices for the August 2025 bid cycle as the final prices for all meter categories.
Other provisions read thus: “The evaluation of all bids in respect of Tranche B shall be on the basis of meter
stock availability and technical assessment.
“DisCos shall, within 10 (ten) days from the effective date of this Order, conduct
a transparent procurement process for the selection and execution of a contract
with MAPs with verified and ready-for-deployment meter stock for the metering of end-use customer meters under the MAF scheme.
“DisCos shall, no later than 15 (fifteen) days from the date of the Order, submit to the Commission a list of their selected MAPs, details of meter inventory,
including meter types, brand names, serial numbers, and meter location, to
obtain a “No-Objection” approval from the Commission.
“Selected MAPs shall, within 7 (seven) days of the Commission’s No-Objection
approval of the procurement process, deliver 100% of the contracted meter
volume to the DisCo’s warehouse which shall be verified by the Commission.
“Where the selected MAP fails to deliver the contracted meter quantities within
the 7- day timeframe, supply of the outstanding meter quantities shall be
opened up to another MAP on a first-come, first-served basis. Each delivery
shall be certified by a Store Receipt Voucher (“SRV”) issued by the DisCo.
“Upon delivery of the contracted meter stock, DisCos shall on behalf of the
MAPS, submit a request to the Fund Manager for the payment of 60% of the
contract sum, accompanied by the SRV.
“Each MAP shall submit a Performance Bond in respect of the meter installation, issued in favour of the Fund Manager by a licensed commercial bank in Nigeria. The Performance Bond shall be equivalent to 5% of the total contract value and shall remain valid for a minimum period of 90 (ninety) days from the date of issuance.
“The balance of 40% of the contract sum shall be payable upon the verified installation of the entire contracted quantity by the Fund Manager.
“DisCos shall ensure that all the necessary resources and network clearance required by the MAPs to install meters based on installation plans are provided and/or completed.
“Where a DisCo elects to move an existing customer’s connection point to a
pole or high wall to ensure revenue protection, such DisCo shall bear the cost for the relocation.
“MAPs shall ensure that they obtain the necessary permits and clearances required to fully deploy meters under Tranche B within the installation time
frame specified by the Commission, including NEMSA certification seals.
“Where the non-installation of meters is directly attributable to DisCo’s failure to provide the required network clearance or failure to furnish accurate KYC information to the MAP within the stipulated installation period, such DisCo
shall be liable to a penalty which shall be equivalent to the total cost of the uninstalled meters. Penalty shall be deducted from the DisCo’s approved
Administrative Operating Expenditure (“Admin OpEx”).”
