The Nigerian Electricity Regulatory Commission (NERC) has rolled out a stricter and time-bound framework for electricity distribution companies (DisCos) under the second phase of the Meter Acquisition Fund (MAF) scheme, approving the disbursement of ₦28 billion for the free metering of all remaining Band A customers nationwide.

The new order, NERC Order No: 2025/10, took effect on October 6, 2025, and is part of the Presidential Metering Initiative designed to close Nigeria’s seven-million-meter deficit and reduce reliance on estimated billing.

What’s New in Tranche B of the Metering Framework

Under this new phase, NERC has shifted focus to metering all outstanding Band A customers (the premium users who receive at least 20 hours of power daily) and speeding up metering for Band B customers.

According to NERC Vice Chairman Dr. Musiliu Oseni and Commissioner for Legal, Licensing and Compliance Dafe Akpeneye, the ₦28 billion allocation will be shared among the 11 DisCos based on their respective market contributions. Ikeja Electric tops the list with ₦5.47bn, followed by Eko DisCo (₦4.36bn), Ibadan DisCo (₦4.26bn), and Abuja DisCo (₦3.31bn).

Strict Timelines for Procurement, Delivery, and Installation

To prevent delays that plagued earlier metering initiatives, NERC has imposed firm deadlines for every stage of the process, from procurement to installation:

  • 10 Days: DisCos must begin and complete a transparent procurement process for selecting Meter Asset Providers (MAPs) with verified and ready meter stocks.
  • 15 Days: Selected MAPs and meter inventories (including types, serial numbers, and locations) must be submitted to NERC for approval.
  • 7 Days (Post-Approval): MAPs must deliver 100% of the contracted meters to DisCo warehouses for verification.

Failure to meet these deadlines will trigger immediate reallocation of supply rights to other providers on a first-come, first-served basis.

Conditional Payments and Penalties

To ensure accountability, NERC introduced a two-stage payment system:

  • 60% of contract funds will be released upon meter delivery and verification.
  • The remaining 40% will be paid only after successful installation is confirmed.

DisCos will also face penalties if installation delays are linked to their lapses such as incomplete network clearance or inaccurate customer data. Any defaulting DisCo will incur a fine equivalent to the cost of the uninstalled meters, which will be deducted from its approved Administrative Operating Expenditure (AOE).

Completion Deadline: December 31, 2025

All installations funded under Tranche B must be completed by December 31, 2025, according to NERC’s directive.

Why the New Framework Matters

The Meter Acquisition Fund was established to overcome the creditworthiness challenges of DisCos, which have historically limited access to financing for metering and infrastructure upgrades. Previous regulatory efforts, such as the Meter Asset Provider Regulations (2018) and MAP & National Mass Metering Regulations (2021), failed to eliminate the deficit.

By tightening timelines and linking payments to performance, NERC hopes to accelerate meter deployment, reduce energy theft, and enhance billing transparency across Nigeria’s power sector.

The Bigger Picture

As of June 2025, Nigeria had 6.42 million metered customers, pushing the national metering rate slightly up to 54.33% from 53.78% in May. With the new ₦28bn tranche, NERC expects all Band A customers to be fully metered by year-end 2025. This is a milestone expected to boost revenue protection, improve service quality, and move Nigeria closer to eliminating estimated billing.