The Nigerian Electricity Regulatory Commission has approved N30bn for the third phase of the Meter Acquisition Fund to provide prepaid meters for unmetered Band A customers and increase coverage among B and B consumers.

The regulator also directed electricity distribution companies (DisCos) to complete all installations under the programme by May 31, 2027, warning that beneficiaries must not be charged for the meters.

Also read: Obasa announces ₦50m education support for 500 Lagos students

NERC announced the approval 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 disclosed the development in a statement shared on its official X account on Tuesday.

It said the N30bn would be distributed among the 11 electricity distribution companies in proportion to their respective contributions to the fund.

The funding is intended to cover all remaining unmetered B and A customers while accelerating installations for Band B consumers, with equitable distribution across states within each DisCo’s franchise area.

The initiative forms part of the Federal Government’s Presidential Metering Initiative, which aims to address Nigeria’s electricity metering gap, reduce estimated billing and improve accountability in the power distribution system.

Under the new arrangement, DisCos are required to conduct transparent procurement exercises involving eligible local meter manufacturers and assemblers, as well as Meter Asset Providers with verified meter stocks.

NERC said it had set maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.

The regulator also introduced a two-stage payment arrangement to strengthen accountability and ensure that meter providers deliver the equipment before receiving full payment.

Under the arrangement, 70 per cent of contract payments will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.

The commission reiterated that all meters supplied and installed through the fund must be provided free of charge to consumers.

It warned electricity distribution companies and their agents against attempting to sell the meters.

It further directed that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.

The order also addresses cases where distribution companies relocate customers’ existing connection points for revenue protection purposes.

According to NERC, where a DisCo initiates such a relocation, it must bear the associated cost rather than transfer the financial responsibility to the affected customer.

The commission also provided for sanctions against distribution companies whose defaults obstruct or delay meter installations, reinforcing their responsibility to implement the programme within the stipulated deadline.

To prevent diversion of funds and ensure proper execution, the regulator prescribed monitoring, reporting and evaluation requirements for the fund manager, distribution companies and participating meter providers.

It also directed that all supply and installation contracts executed under Tranche C be submitted to the commission.

The latest intervention comes amid persistent concerns over estimated billing, which continues to affect electricity consumers because of inadequate metering across the country.

The metering gap has remained a major challenge in Nigeria’s electricity market, with customers frequently disputing bills issued by distribution companies in the absence of functioning meters.

NERC said the new order was designed to accelerate the closure of the metering gap, strengthen revenue assurance for distribution companies, improve service delivery and protect consumers.

Also read: Obasa announces ₦50m education support for 500 Lagos students

The commission urged all stakeholders to comply with the order, particularly its provisions on procurement, installation, reporting and consumer protection.