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

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

NERC disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, which took effect on November 2, 2026.

11 DisCos to Share N30bn

According to the regulator, the N30bn allocation will be shared among the country’s 11 electricity distribution companies in proportion to their respective contributions to the fund.

The funding is intended to cover all remaining unmetered Band A customers while accelerating meter installations for Band B consumers across the states within the distribution companies’ service areas.

The initiative is part of the Federal Government’s Presidential Metering Initiative, which seeks to address the country’s metering gap, reduce estimated billing and improve accountability in electricity distribution.

Meters Must Be Free

NERC said distribution companies must conduct transparent procurement exercises involving eligible local meter manufacturers, assemblers and Meter Asset Providers with verified meter stocks.

It warned that all meters supplied and installed under the programme must be provided free of charge to consumers.

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

NERC Introduces Payment Conditions

To ensure accountability, the regulator introduced a two-stage payment arrangement for participating meter providers.

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.

NERC also prescribed maximum procurement prices based on median national bid prices submitted by Meter Asset Providers during the September 2026 bidding exercise.

DisCos to Bear Certain Relocation Costs

The commission said distribution companies must bear the cost of relocating customers’ existing connection points where such relocation is initiated by the operators for revenue protection purposes.

It warned that the financial burden must not be transferred to affected consumers.

NERC also provided for sanctions where defaults by distribution companies obstruct or delay installations under the programme.

Additionally, all supply and installation contracts executed under Tranche C must be submitted to the commission, while the fund manager, distribution companies and participating meter providers are required to comply with monitoring, reporting and evaluation procedures.

The regulator said the intervention was aimed at closing Nigeria’s metering gap, strengthening revenue assurance for distribution companies, improving service delivery and protecting consumers from estimated billing.