FG Approves ₦28 Billion for Free Electricity Meter Rollout by DisCos

The Nigerian Electricity Regulatory Commission (NERC) has approved a ₦28 billion bailout fund for electricity Distribution Companies (DisCos) to accelerate the rollout of free prepaid meters across the country. The initiative, introduced under the second phase of the Meter Acquisition Fund (MAF) Scheme, is designed to close Nigeria’s long-standing metering gap, reduce estimated billing, and enhance accountability within the power sector.

According to NERC, the funds will be disbursed to the 11 DisCos in proportion to their market performance and operational coverage. The intervention, tagged MAF Tranche B, mandates DisCos to immediately begin the transparent procurement of meters through accredited Meter Asset Providers (MAPs) that have verified, ready-for-deployment stock.

Under the new directive, the DisCos are expected to prioritize customers on “Band A” and “Band B” feeders — those who receive the most reliable power supply — to ensure fairness and service balance. The scheme aims to install hundreds of thousands of prepaid meters nationwide before the end of 2025, thereby addressing one of the major complaints of electricity consumers — arbitrary and estimated billing.

NERC outlined clear implementation timelines in the order, with DisCos required to start procurement processes within 10 days of the approval date. Within 15 days, they must submit lists of MAPs, their meter inventory, and deployment plans for regulatory clearance. After approval, installation must begin without delay, and completion is targeted for December 31, 2025.

The ₦28 billion fund will be managed under strict accountability rules. Payments to MAPs will be made in two stages: 60% upon meter delivery and verification, and the remaining 40% after successful installation and customer validation. In the event of delays or non-performance, penalties will apply, and costs may be deducted from the concerned DisCo’s operational expenditure.

NERC emphasized that all meters provided under this phase are completely free of charge to customers. Consumers are not required to make any form of payment or contribution to receive their meters. This move is expected to eliminate financial barriers to metering, particularly for low- and middle-income households who often struggle with the upfront cost of obtaining meters.

The regulator also stressed that the initiative aligns with President Bola Tinubu’s Presidential Metering Initiative (PMI), which aims to achieve universal metering across Nigeria within a few years. By improving access to prepaid meters, the government seeks to promote fairness in electricity billing, strengthen consumer confidence, and enhance revenue collection for DisCos through accurate measurement of energy consumption.

Each DisCo will receive a specific share of the ₦28 billion based on its size and number of customers. For instance, Ikeja Electric and Eko Electricity Distribution Company are expected to receive the largest allocations due to their expansive customer bases, while smaller firms such as Yola and Jos DisCos will get proportionate amounts.

Industry experts have hailed the bailout as a positive step towards addressing inefficiencies in Nigeria’s power distribution system. The free meter rollout, they argue, could significantly reduce the incidence of energy theft, curb billing disputes, and promote a culture of payment discipline among consumers. For the DisCos, it provides an opportunity to strengthen operational transparency and rebuild public trust, which has been eroded by years of estimated billing and erratic supply.

However, stakeholders have also urged NERC and the federal government to ensure robust monitoring of the implementation process. Past metering schemes, including earlier tranches of the MAF and the National Mass Metering Programme (NMMP), were hindered by logistics challenges, funding delays, and uneven execution across different regions. Ensuring the readiness of MAPs, enforcing local content requirements, and verifying installations will be critical to avoid repetition of such issues.

The commission noted that DisCos must also collaborate closely with community leaders, distribution transformers’ committees, and consumer advocacy groups to guarantee fair meter distribution and proper customer education. All installation activities must be transparent and well-documented to prevent corruption or diversion of meters.

The free meter initiative is also expected to contribute to broader reforms in the Nigerian power sector, which has long struggled with liquidity issues and consumer distrust. Accurate metering will help reduce revenue leakages, enhance energy accounting, and attract investment into the sector by providing more reliable data for planning and regulation.

Analysts predict that if the ₦28 billion intervention is effectively implemented, it could cut the national metering gap — currently estimated at over seven million customers — by nearly one-third before the end of next year. It may also set the stage for improved service-based tariffs, as accurate metering allows for better monitoring of energy supply and consumption patterns.

For millions of Nigerian households, the prospect of receiving free meters offers a glimmer of hope for more transparent billing and improved service delivery. As installations begin across the country, the success of this initiative will depend largely on how efficiently DisCos execute their responsibilities and how strictly NERC enforces compliance.

 

In the coming months, consumers, civil society groups, and industry observers will be watching closely to see whether this ₦28 billion intervention can deliver on its promise — closing the metering gap, ending estimated billing, and building a fairer, more efficient electricity sector for Nigeria.