The Nigerian Electricity Regulatory Commission (NERC) has approved the release of ₦28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B Scheme.
The intervention, detailed in Order No. NERC/2025/107 effective October 6, is part of efforts to accelerate nationwide metering, close the metering gap, and reduce billing disputes between consumers and power distributors.
According to the Commission, the fund is designed to provide a credible revenue stream from market collections, which can attract long-term financing for utilities struggling with limited creditworthiness.
“DisCos shall utilise ₦28 billion of the MAF scheme for Tranche B, apportioned in accordance with their respective contributions as of July 2025 market settlement,” NERC stated. “The funds will be used for the procurement and installation of meters for unmetered Band A and B customers within their franchise areas.”
Under the directive, all DisCos are required to conduct a transparent procurement process within 10 days to select Meter Asset Providers (MAPs) with verified, ready-for-deployment meter stock.
The selected MAPs must then be submitted to NERC for ‘No Objection’ approval within 15 days, alongside detailed meter inventories including types, brands, and serial numbers.
NERC also mandated that all participating MAPs must meet a minimum 30 percent local content threshold, supported by agreements with local manufacturers or assemblers.
Funding Model and Accountability
The Commission explained that the initiative would address DisCos’ difficulty in raising funds for metering investments, which has contributed to a national metering deficit exceeding seven million customers.
Under the MAF framework, DisCos are to integrate their systems with the fund manager’s IT platform, complete KYC documentation, and confirm readiness for installations.
Payments will be made in two tranches — 60 percent upon verified meter delivery and 40 percent after confirmed installation. NERC warned that DisCos will face penalties equivalent to the cost of uninstalled meters if installation delays are due to their own failures.
The Commission directed that all installations funded under Tranche B must be completed by December 31, 2025.
Building on Presidential Metering Initiative
The MAF Tranche B builds on the Presidential Metering Initiative (PMI) launched earlier this year to deliver 10 million meters nationwide by 2030, aiming to improve transparency and efficiency in electricity billing.
