NERC: N30bn Free Meters for Nigeria's Band A Customers Approved

• NERC has approved N30 billion for the Meter Acquisition Fund Tranche C to provide free meters.
• This initiative targets all unmetered Band A customers and accelerates metering for Band B customers.
• Order NERC/2026/121 mandates transparent procurement from eligible manufacturers and sets maximum prices.
• DisCos must provide meters free of charge, with installation required by May 31, 2027.
• Sanctions will apply to DisCos for delays or impediments to meter installation.

Lawyers advising Nigerian DisCos or meter providers must review Order NERC/2026/121 to ensure compliance with new procurement, pricing, and installation requirements for the Meter Acquisition Fund Tranche C.

The Nigerian Electricity Regulatory Commission (NERC) has formally approved a significant N30 billion allocation for the third phase of its Meter Acquisition Fund (MAF), designated as Tranche C. This substantial funding initiative aims to provide free electricity meters to all remaining unmetered Band A customers across Nigeria, while also accelerating the metering process for Band B customers. The directive, outlined in Order No. NERC/2026/121, became effective on November 2, 2026, marking a crucial step in addressing the nation's persistent electricity metering gap.

Under this new arrangement, the N30 billion will be distributed among the 11 electricity Distribution Companies (DisCos) in Nigeria. The allocation to each DisCo will be proportional to their individual contributions to the Meter Acquisition Fund, ensuring a fair distribution of resources. NERC's primary objective with this third tranche is to expedite the closure of the Nigeria electricity metering gap, ensuring that meters are equitably distributed across all states within each DisCo's operational franchise areas.

Order NERC/2026/121 establishes stringent guidelines for the procurement and installation of these meters. DisCos are mandated to conduct transparent procurement processes, engaging only eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) who can demonstrate verified meter stocks. To prevent price gouging, NERC has set maximum procurement prices, benchmarked against the median national MAP online bid prices recorded during the September 2026 bid cycle.

The order further specifies a two-stage payment structure for selected meter providers: an initial 70 percent payment upon verification of meter stock delivery, with the remaining 30 percent disbursed only after confirmation of complete installation. Crucially, all meters supplied and installed under this MAF program must be provided to customers free of charge. To reinforce this, each meter must prominently display the relevant DisCo's name, the applicable MAF tranche, and the explicit inscription, "NOT FOR SALE." Furthermore, if a DisCo initiates the relocation of an existing customer's connection point for revenue protection, the distribution company is responsible for bearing the associated costs.

NERC has underscored the importance of strict compliance, warning that sanctions will be applied to DisCos whose defaults impede or delay meter installation. To ensure accountability and transparency throughout the process, the order institutes comprehensive monitoring, reporting, and evaluation requirements for the Fund Manager, the DisCos, and all participating meter providers. All supply and installation contracts executed under Tranche C must be formally filed with the Commission.

A critical deadline has been set: the installation of all meters under this NERC N30bn free meters Nigeria initiative must be completed on or before May 31, 2027. This ambitious timeline reflects NERC's commitment to rapidly closing the national metering gap, thereby strengthening revenue assurance for the DisCos, improving overall service delivery to consumers, and protecting the interests of electricity customers. Lawyers advising Nigerian DisCos or meter providers must review Order NERC/2026/121 to ensure compliance with new procurement, pricing, and installation requirements for the Meter Acquisition Fund Tranche C.

Lawyers advising Nigerian DisCos or meter providers must review NERC Order NERC/2026/121 to ensure compliance with new procurement, pricing, and installation requirements for the N30bn Meter Acquisition Fund Tranche C. Compliance officers should focus on the 'free meter' mandate, transparent procurement processes, and the May 2027 installation deadline to avoid potential sanctions.

Source: Original reporting via Vanguard