The Nigerian Electricity Regulatory Commission (NERC) has approved ₦28 billion to fast-track the deployment of electricity meters across the country under the Meter Acquisition Fund (MAF) scheme.
The initiative aims to eliminate the metering gap for all Band A customers and substantially reduce it for Band B consumers.
According to NERC, the funds will be distributed among Distribution Companies (DisCos) based on their respective contributions as of July 2025. The Commission stated that all meters provided under the MAF framework will be issued to customers at no cost.
The approval was formalised through a new regulatory instrument titled “Order on the Operationalisation of Tranche B of the Meter Acquisition Fund (MAF)”, signed by NERC’s Vice Chairman, Mr Musiliu Oseni, and the Commissioner for Legal, Licensing & Compliance, Mr Dafe Akpeneye.
Oseni described the operationalisation of Tranche B as a major milestone in the Commission’s metering reform agenda, noting that it complements the ongoing Presidential Metering Initiative (PMI), which promotes the adoption of smart metering technologies for data analytics, demand-side management, and revenue protection.
“With a clear regulatory framework, dedicated funding, and firm implementation deadlines, Tranche B of the MAF scheme is expected to significantly narrow Nigeria’s metering gap, enhance service delivery, and foster greater customer trust in the power sector,” Oseni said.
Under the new Order, DisCos are required to commence procurement within 10 days of the effective date and complete all installations by 31 December 2025.
The ₦28 billion allocation builds upon the successful completion of Tranche A of the MAF scheme, which utilised ₦21 billion and concluded on 30 June 2025.
Key Provisions of the Order
Meter Pricing: Adoption of median Meter Asset Provider (MAP) bid prices from the August 2025 bid cycle.
Transparent Procurement: DisCos must select MAPs with ready-to-deploy stock and obtain NERC’s “No Objection” within 15 days.
Performance Bond: MAPs are to provide a performance bond worth 5% of the contract value, valid for at least 90 days.
Phased Payment: 60% of the contract value will be paid upon verified meter delivery, and the remaining 40% after confirmed installation.
Penalties: DisCos delaying installations due to inaccurate KYC data or network issues will face deductions from their approved administrative operating expenses.
The Order emphasises local manufacturing participation, mandating MAPs to meet a minimum 30% local content threshold through partnerships with Local Meter Manufacturers or Assemblers (LMMAs).
All contracts must be filed with NERC, and both DisCos and MAPs must comply with the Fund Manager’s operational manual. Regular reporting and performance audits will be conducted to ensure transparency and accountability.
Despite earlier interventions including the Meter Asset Provider (MAP) Regulations of 2018 and the MAP and National Mass Metering Regulations (MAP & NMMR) of 2021 Nigeria’s metering gap remains above seven million customers.
A key challenge has been the limited financial capacity of DisCos to undertake large-scale meter procurement. To address this, NERC created the Meter Acquisition Fund as a sustainable mechanism to support DisCos with long-term financing, reduce commercial losses, improve service quality, and rebuild customer confidence.
NERC reaffirmed that the initiative aligns with its mandate to promote efficiency, protect consumer rights, and drive sustainable growth within the Nigerian Electricity Supply Industry (NESI).
