DisCos have until May 31, 2027, to complete installations under the third phase of the Meter Acquisition Fund, as the regulator warns against charging consumers for the meters…..
The Nigerian Electricity Regulatory Commission (NERC) has approved N30 billion for the third phase of its Meter Acquisition Fund, in a fresh move to address the country’s electricity metering gap and reduce reliance on estimated billing.
The funding will support the installation of meters for all remaining unmetered Band A customers while expanding coverage among consumers in Band B.
Alongside the approval, the regulator has directed the country’s 11 electricity distribution companies (DisCos) to complete all meter installations under the programme by May 31, 2027.
NERC disclosed the development in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, which took effect on November 2, 2026. The commission also announced the order in a statement published on its official X account.
According to the regulator, the N30 billion allocation will be distributed among the 11 DisCos based on their respective contributions to the fund, with provisions for equitable coverage across states within their franchise areas.
How NERC plans to distribute the N30bn
The latest allocation forms part of the Federal Government’s Presidential Metering Initiative, which is designed to bridge the electricity metering deficit, improve billing transparency and strengthen accountability in the power sector.
Under the arrangement, distribution companies are expected to provide meters for customers who remain unmetered in Band A while accelerating installations for Band B consumers.
To ensure transparency in the procurement process, NERC has directed the DisCos to conduct open procurement exercises involving eligible local meter manufacturers and assemblers, as well as Meter Asset Providers with verified stocks.
The commission has also established maximum procurement prices using the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding exercise.
In addition, a two-stage payment structure has been introduced to ensure that meter suppliers fulfil their obligations before receiving full payment.
Under the arrangement, 70 per cent of the contract sum will be released after verification of delivered meter stocks, while the remaining 30 per cent will only be paid after the successful installation of the meters has been confirmed.
NERC warns DisCos against selling free meters
The regulator has reiterated that all meters provided under the Meter Acquisition Fund must be installed at no cost to electricity consumers.
It warned distribution companies and their agents against demanding payment from customers for meters supplied through the programme.
To prevent the unauthorised sale or diversion of the equipment, NERC has also directed that every meter supplied under Tranche C must prominently display the name of the relevant distribution company, the applicable funding tranche and the inscription, “NOT FOR SALE”.
The commission further clarified that customers must not bear the cost of relocating existing electricity connection points where such movement is initiated by a DisCo for revenue protection purposes.
In such circumstances, the distribution company will be responsible for the associated expenses.
NERC also warned that distribution companies could face sanctions where their failure to meet regulatory obligations obstructs or delays meter installations.
NERC strengthens monitoring of meter programme
Beyond the funding and installation requirements, the commission has introduced monitoring, reporting and evaluation measures to prevent the misuse of funds and ensure that the programme delivers the intended results.
The Fund Manager, distribution companies and participating meter providers are expected to comply with the prescribed oversight and reporting requirements.
NERC has also directed that all contracts for meter supply and installation under Tranche C must be submitted to the commission.
The latest intervention comes as the regulator continues efforts to improve electricity metering across the country, with unmetered customers frequently exposed to estimated billing and disputes over electricity consumption.
With the May 31, 2027 deadline now in place, attention will turn to the ability of distribution companies and participating meter providers to deliver the installations within the stipulated timeframe.
