FG approves N28 billion for prepaid meters to tackle Nigeria’s poor metering coverage 

The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has approved the disbursement 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.

The move is aimed at improving Nigeria’s poor metering density, which has long contributed to huge commercial losses, estimated billing controversies, and widening market shortfalls across the power sector.

According to Order No: NERC/2025/107 published on the commission’s website, the MAF provides a financial mechanism for accelerating meter rollout to unmetered customers at no cost, while ensuring a credible revenue stream that supports long-term financing for DisCos.

DisCos to receive N28 billion allocation 

NERC directed all DisCos to utilise the N28 billion fund to provide meters for Band A and Band B customers within their networks. The allocation will be distributed according to each company’s market collection share as of July 2025.

The regulator also gave DisCos 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 meter stock. Selected MAPs must be submitted to NERC within 15 days for “No-Objection” approval.

To support local manufacturing, the commission mandated a minimum 30% local content threshold for all participating MAPs, backed by agreements with domestic manufacturers or assemblers.

DisCos face penalties for delays 

Under the new framework, 60% of contract funds will be released to the MAP after verified meter delivery, while the remaining 40% will be paid upon confirmation of full installation.

NERC warned that any DisCo responsible for delays due to poor network clearance or inaccurate customer information will face penalties equal to the cost of uninstalled meters.

All installations under Tranche B are to be completed by December 31, 2025, according to the order.

Metering gap and need for the fund 

Nigeria’s metering gap remains above seven million customers, one of the biggest in Africa, leading to energy theft, poor revenue collection, and widespread billing disputes. This has left the market short of liquidity and increased the debt burden along the electricity value chain.

The newly approved Meter Acquisition Fund is not the first attempt to address this problem. The Meter Asset Provider (MAP) programme introduced in 2018 under former President Muhammadu Buhari sought to increase access to prepaid meters through consumer financing. It was later followed by the National Mass Metering Programme (NMMP), a Central Bank of Nigeria–backed intervention introduced under former CBN Governor Godwin Emefiele.

While both programmes recorded some progress, implementation challenges and weak financing structures left millions of customers still unmetered. The new MAF structure seeks to address this by leveraging market-based funding mechanisms backed by DisCos’ revenue collections, instead of relying solely on government or CBN financing.

Why it matters 

The success of the MAF could improve cash flow for DisCos, reduce the sector’s liquidity gap, and rebuild consumer confidence in the billing system. However, like previous initiatives, its effectiveness will depend on transparent disbursement, regulatory enforcement, and the ability of DisCos to meet the installation deadline.

What you should know 

According to NERC, DisCos installed a total of 225,631 meters in the second quarter of 2025, marking a 20.55% increase compared to the 187,161 meters installed in the first quarter of the year.

The regulator said 147,823 units (65.52%) were deployed under the Meter Asset Provider (MAP) framework, 65,315 meters under the Meter Acquisition Fund (MAF) scheme, 12,259 meters through the Vendor Financed framework, and 234 meters were installed under the DisCo Financed scheme.