Introduction to the Prepaid Meter Distribution Initiative
Electricity distribution companies (DisCos) in Nigeria have started distributing prepaid meters at no cost to their customers. However, it has been observed that these meters are primarily being allocated to Band A and some Band B customers. This initiative comes after the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, accused DisCos of not picking up available meters for onward distribution.
At the recent 4th NESI Stakeholders Meeting in Abuja, Oseni mentioned that there are currently between 600,000 and 700,000 meters available nationwide. He urged utilities to enhance their publicity efforts and increase the speed of rollout, emphasizing that the government has already invested in this initiative, and DisCos must step up their efforts.
NERC’s Call for Improved Performance
NERC Commissioner for Corporate Services, Nathan Shatti, addressed the issue of poor performance by certain utilities. He highlighted that Abuja and Kano DisCos had only achieved a two percent compliance rate on refunds. Shatti criticized the technical excuses provided by DisCos and stated, “If your network is not ready for metering, do not collect people’s money.”
He further pointed out that for every transformer or meter not installed, DisCos incur losses. Therefore, it is in their interest to meter customers and resolve transformer-related issues. Shatti also revealed that over 350,000 meters remain to be migrated to the new STS standard, demanding immediate cleanup of obsolete data.
Free Meters: A Misunderstanding?
According to The PUNCH, meters are currently being distributed across the franchise areas of DisCos. Confirming this, Sunday Oduntan, Chief Executive of the Association of Nigerian Electricity Distributors, said that the meters are being distributed at no cost to customers. However, he clarified that the meters were procured by the Federal Government and will be paid for by the DisCos.
Oduntan explained that the meters came at a significant cost to the utility companies, who are expected to repay the cost over 10 years. He emphasized that the meters are not truly free, as the DisCos are responsible for repaying the government. “There’s no free food in Freetown,” he said, highlighting the misconception that free meters mean they are given without any cost.
Refunds and Customer Education
Under the Meter Asset Provider (MAP) programme, customers who paid for meters must receive refunds. Oduntan noted that the free meters distributed under the current initiative are separate from the MAP programme. He stressed that DisCos need to educate customers about the refunds they will receive over time.
Oduntan warned that some customers may misunderstand the refund process, leading to accusations of fraud. He explained that when customers receive more units during vending, it could be due to the refund they are getting from the meters they paid for. “If you don’t tell them, how do you blame customers when they think they are paying for meters and not getting the refund?” he asked.
Metering Progress and Challenges
Nigeria’s metering performance improved between September and October 2025, with 187,765 electricity customers newly metered nationwide. According to the latest metering factsheet released by NERC, the national metering rate increased from 55.37 per cent in September to 56.07 per cent in October.
However, more than 5.3 million electricity customers remain unmetered across the country. Despite this, sector observers believe that sustained progress through the end of 2025 could bring Nigeria closer to achieving universal metering.
NERC Approves N28bn for Meter Acquisition Fund
Earlier in October, NERC approved the disbursement of N28bn to electricity distribution companies for the second phase of the Meter Acquisition Fund (MAF) scheme. This funding aims to meter all outstanding Band A customers free of charge.
The directive, cited as ‘NERC Order No: 2025/10—Order on the Operationalisation of Tranche B of the Meter Acquisition Fund’, took effect from October 6, 2025. It forms part of the Presidential Metering Initiative, which seeks to close Nigeria’s estimated seven-million-meter deficit.
Strict Timelines and Penalties
Under the new framework, NERC imposed strict timelines for procurement, delivery, and installation. DisCos were mandated to begin the procurement process within 10 days of the order’s effective date and submit their selected meter providers to NERC within 15 days for approval.
Once meters are delivered and verified, the Fund Manager will release 60 per cent of the contract sum, while the remaining 40 per cent will be paid only after full installation is verified. NERC warned that distribution companies would be penalized if installation delays arise from their own failures.
Conclusion
The Meter Acquisition Fund was created to offset the impact of DisCos’ poor creditworthiness, which has hindered their ability to secure loans for metering and infrastructure. Despite earlier interventions such as the Meter Asset Provider Regulations 2018 and the MAP & National Mass Metering Regulations 2021, Nigeria’s metering deficit remains high.
