Chioma Eche
The Nigerian Electricity Regulatory Commission (NERC) has approved N28bn to accelerate the deployment of electricity meters to consumers.
The funds will be distributed according to each DisCo’s contributions as of the July 2025.
The target is to fully meter all outstanding Band A customers and significantly reduce the gap for Band B customers.
All meters deployed under the MAF framework will be provided at no cost to end-use customers.
This move was made through a new regulatory instrument titled: “Order on the Operationalisation of Tranche B of the Meter Acquisition Fund (MAF)”.
According to the Order signed by the Commission’s Vice Chairman, Mr. Musiliu Oseni, and the Commissioner for Legal, Licensing & Compliance, Mr. Dafe Akpeneye, the operationalisation of Tranche B marks another major milestone in NERC’s metering reform agenda.
According to Oseni, the initiative complements the Presidential Metering Initiative, which seeks to leverage 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,” he stressed.
Under the new Order, DisCos are required to begin procurement within 10 days of the effective date and must complete all installations by 31 December 2025.
It also provides a structured framework for the transparent and accountable utilisation of ₦28 billion allocated for the procurement and installation of smart meters nationwide.
The Order builds on the implementation of Tranche A and aligns with the objectives of the Presidential Metering Initiative (PMI).
Following the successful deployment of Tranche A, which utilised ₦21 billion and concluded on 30 June 2025, NERC has now approved ₦28 billion for Tranche B of the MAF scheme.
Key provisions include:
Adoption of Median MAP Prices: NERC will use the median DisCo MAP online bid prices for the August 2025 bid cycle as the final meter prices.
Transparent Procurement: DisCos must select Meter Asset Providers (MAPs) with ready-to-deploy stock and obtain NERC’s “No Objection” within 15 days.
Performance Bond Requirement: MAPs must provide a performance bond equivalent to 5% of the contract value, valid for at least 90 days.
Phased Payment: 60% of the contract sum will be disbursed upon verified meter delivery, with the remaining 40% paid after confirmed installation.
Penalties: DisCos that delay installations due to inaccurate KYC data or lack of network readiness will face penalties deducted from their approved administrative operating expenses (Admin OpEx).
Promoting Local Content and Accountability
The Order reinforces local manufacturing participation by requiring MAPs to meet a minimum 30% local content threshold through partnerships with Local Meter Manufacturers or Assemblers (LMMAs).
All contracts must be filed with the Commission, while both DisCos and MAPs are obligated to comply fully with the Fund Manager’s operational manual. Regular reporting and performance auditing will ensure transparency and accountability.
Bridging Nigeria’s Metering Gap
Despite multiple interventions — including the introduction of the Meter Asset Provider (MAP) Regulations in 2018 and the MAP and National Mass Metering Regulations (MAP & NMMR) in 2021 — Nigeria’s metering gap remains above seven million customers.
A major constraint has been the limited capacity of Distribution Companies (DisCos) to access financing for large-scale meter procurement.
To address this challenge, NERC established the Meter Acquisition Fund (MAF) to provide a sustainable revenue stream that enhances DisCos’ ability to secure long-term financing for metering.
The fund, managed by a designated Fund Manager under a Commission-approved structure, is designed to reduce commercial and collection losses, improve service quality, and build customer trust.
The Nigerian Electricity Regulatory Commission (NERC) is the independent regulator of the Nigerian Electricity Supply Industry (NESI), established to ensure efficient market operations, protect consumer rights, and promote sustainable growth in the power sector.