… Ikeja Disco ₦5.47bn, EKEDC ₦4.36bn, IBEDC ₦4.26bn lead allocations
… Kaduna ₦1.46bn, Jos ₦793.9m, Yola ₦231.25m receive lowest allocations
Oredola Adeola
The Nigerian Electricity Regulatory Commission (NERC) has approved the release of ₦28 billion for the second phase of the Meter Acquisition Fund (MAF) under the Presidential Metering Initiative (PMI), aimed at bridging Nigeria’s over seven million-customer metering gap and improving transparency in electricity billing across the country.
The PMI followed the successful completion of Tranche A of the programme, which utilised ₦21 billion for the procurement and installation of meters across various Distribution Companies (DisCos).
The directive, contained in a document co-signed by NERC Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, outlines the Order on the Operationalisation of “Tranche B” of the Meter Acquisition Fund, which officially took effect on October 6, 2025.
According to the Commission’s allocation schedule, Ikeja Electric Plc received the highest allocation of ₦5.47 billion, followed by Eko Electricity Distribution Company (₦4.36 billion) and Ibadan Electricity Distribution Company (₦4.26 billion) under the Tranche B disbursement.
Other allocations include Abuja Electricity Distribution Company (Abuja DisCo), which will receive ₦3.31 billion, and Benin Electricity Distribution Company (Benin DisCo), with ₦2.30 billion. Port Harcourt Electricity Distribution Company (PHED) was allocated ₦2.27 billion, while Enugu DisCo will get ₦1.98 billion.
Further down the list, Kano DisCo will receive ₦1.58 billion, followed by Kaduna DisCo with ₦1.46 billion. Jos Electricity Distribution Company (Jos DisCo) is allocated ₦793.9 million, while Yola DisCo, which serves the North-East region, will receive the least amount ₦231.25 million.
The order according to NERC represented a continuation of the Commission’s efforts to expand metering coverage across the Nigerian Electricity Supply Industry (NESI).
Advisors Reports gathered that the latest directive builds on the Meter Asset Provider (MAP) Regulations of 2018 and the Meter Asset Provider and National Mass Metering Regulations (MAP&NMMR) of 2021, frameworks initially developed to address the chronic metering shortfall in the electricity sector.
Despite these interventions, the national metering gap remains in excess of seven million customers.
The Commission identified that a key obstacle to achieving nationwide metering has been the inability of Distribution Companies to secure adequate financing, through debt or equity, for large-scale meter acquisition and other capital investments.
To address this, NERC created the Meter Acquisition Fund to provide a sustainable financing mechanism by leveraging a portion of market collections as a credible revenue stream to back long-term borrowing for metering expansion.
The Fund is managed by a Fund Manager appointed under a regulated framework approved by NERC, with funds allocated proportionally to DisCos based on their contributions to market settlements.
The Federal Government’s Presidential Metering Initiative (PMI) aims to leverage smart metering technologies for data analytics, transparency, and improved customer service delivery across the NESI.
Under this initiative, the Meter Acquisition Fund serves as one of the repayment mechanisms for long-term metering finance.
While the overall target of the PMI is to close Nigeria’s metering gap, the new Order focuses on Band A and Band B customers, classified as customers consuming higher energy volumes and contributing significantly to revenue flow.
Advisors Reports gathered that as of April 2024, ₦21.86 billion had accrued to the Fund, of which ₦21 billion was used for Tranche A.
Following the completion of that phase by June 2025, NERC approved an additional ₦28 billion for Tranche B, to be apportioned among DisCos in line with their July 2025 market settlement contributions.
Under the new framework, DisCos are to utilise the ₦28 billion to procure and install meters for all unmetered Band A and Band B customers within their service areas.
The Commission in the document noted that it has also adopted the median MAP online bid prices for August 2025 as the uniform price benchmark for all meter categories.
It therefore ordered that within 10 days of the Order’s commencement; DisCos must conduct a transparent procurement process to select Meter Asset Providers (MAPs) with verified stock ready for deployment.
It also stated that within 15 days, DisCos must submit to NERC a list of selected MAPs and details of available meter inventory, including meter types, brands, serial numbers, and warehouse locations, for regulatory “No-Objection” approval.
The Commission therefore revealed that approved MAPs are to deliver 100 percent of contracted meters within 7 days of receiving NERC’s clearance, with verification by the Commission and documentation via Store Receipt Vouchers.
It also said DisCos are authorised to request 60 percent of payment from the Fund Manager upon delivery confirmation, and the remaining 40 percent upon verified installation by NERC field officers.
NERC further mandated that all installed meters must be integrated into the National Metering Data Management System (NMDMS) within 72 hours, be remotely readable, tamper-proof, and fully synchronised with the DisCo’s billing infrastructure.
NERC further revealed the plan to constitute a Monitoring Committee comprising representatives of the Commission, the Fund Manager, the DisCos, and the MAPs, oversee the full lifecycle of the Tranche B rollout – from procurement to installation and integration.
Advisors Reports gathered that the Order stipulates that no additional MAF disbursement shall be approved for any DisCo that fails to provide verifiable evidence of full meter installation, customer linkage, and energy accounting.
Furthermore, all meters under the programme have been asked to be engraved or indelibly marked “MAF – NOT FOR SALE” to prevent commercial misuse.
Weekly progress reports are also mandated from all DisCos, covering procurement, delivery, installation, and integration milestones.
The Commission stated that payments from the Fund Manager will only be disbursed upon receipt of verified documentation from NERC confirming delivery or installation milestones.
NERC also warned that it reserves the right to withhold or withdraw funding from any DisCo found in breach of the Order or engaging in malpractice in relation to the scheme.
DisCos and MAPs were also asked to ensure that all customer data associated with the newly installed meters are accurate, complete, and promptly uploaded to the NMDMS database.
