In a major push to solve Nigeria’s chronic metering shortfall, the Federal Government—via the Nigerian Electricity Regulatory Commission (NERC)—has approved ₦28 billion for electricity distribution companies (DisCos) to buy and install prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.
The goal is to ramp up metering coverage, which has long plagued the power sector, causing massive revenue losses, billing confusion, and liquidity strains. Under NERC’s Order No: NERC/2025/107, the MAF provides a mechanism whereby unmetered customers receive meters at no cost while ensuring DisCos maintain viable revenue streams.
How the Funds Will Be Allocated
The ₦28 billion will be distributed among DisCos based on their market collection share (as of July 2025) to serve “Band A” and “Band B” customers.
DisCos have ten days from the order’s effective date (October 6, 2025) to carry out transparent procurement and choose Meter Asset Providers (MAPs) with ready stocks. Once selected, the MAPs must be submitted to NERC within 15 days for “No‑Objection” approval.
To encourage domestic production, MAPs must commit to at least 30% local content by engaging local manufacturers or assemblers.
Payment is split: 60% is released upon meter delivery; the remaining 40% after confirmed installation. DisCos that delay due to network issues or wrong customer data will be penalized—facing the cost of undelivered meters. All installations under Tranche B must be completed by December 31, 2025.
The Metering Challenge
Nigeria faces a metering deficit of over seven million customers, one of the largest in Africa, which fuels energy theft, poor bill collection, and widespread billing disputes. Previous efforts—such as the Meter Asset Provider (MAP) scheme in 2018 and the National Mass Metering Programme (NMMP) backed by the Central Bank, yielded limited success due to weak financing and implementation bottlenecks.
So far in 2025, DisCos have installed 225,631 meters, a 20.55% increase over Q1 installations. Of these, 65.5% were deployed via the MAP program, with the rest across various funding models.
Why It Matters
If successful, the MAF rollout could improve DisCos’ cash flows, reduce sector liquidity gaps, and restore public trust in billing fairness. But much hinges on clean procurement, regulatory discipline, and meeting the aggressive installation timeline.
