NERC approves N28bn for free metering of Band A customers, others

…Orders DisCos to file audited reports, MAF metering performance

By Chris Ochayi

The Nigerian Electricity Regulation Commission, NERC, has announced the approval of deployment of the sum of N28 billion for the procurement of meters for all outstanding unmetered Band A customers.

The funds approved under Tranche B of the Meter Acquisition Fund, MAF, scheme apart from intended to meter all outstanding unmetered Band A customers will also focus on expediting the closure of the metering gap for customers currently classified under Tariff Band B

This development was contained in the Order on the Operationalisation of “Tranche B” of the Meter Acquisition Fund issued by the NERC dated September 30th , 2025 and signed by its Vice Chairman Musiliu O. Oseni and Commissioner Legal, Licensing & Compliance, Dafe C. Akpeneye, respectively.

The Commission said the N28 billion “Shall be allocated in proportion to the respective contributions of the DisCos, and are intended to meter all outstanding unmetered Band A customers while also expediting the closure of the metering gap for customers currently classified under Tariff Band B.

“Schedule 1 provides the detailed breakdown of the funds available to each DisCo for the purchase of end-use customer meters. All the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers.

NERC added, “This Order seeks to –
a. Establish a clear and transparent framework for the implementation of Tranche B of the MAF scheme.
b. Define the eligibility requirements and obligations of DisCos and MAPs in accessing and utilising funds under Tranche B.

“c. Prescribe the terms of financing, repayment, and utilisation of funds under the scheme.
d. Set out the monitoring, reporting and evaluation requirements to ensure accountability, efficiency and transparency in the deployment of MAF- funded meters.
e. Provide operational guidelines and conditions applicable to participating
entities to safeguard the integrity of the MAF scheme.

Under the Eligibility Requirements, the regulatory agency pointed out that , “Distribution Companies shall –
Provide an Application Programming Interface (“API”) for integrating to
the IT platform provided by the FM allowing access to real-time data and
a confirmation of the activation of all meters installed under the MAF
scheme.

“b. Ensure completion of accurate Know-Your-Customer (“KYC”) documentation.
c. Confirm the readiness of the premises for metering of all customer locations where MAF meters are to be deployed

It noted that, “Meter Asset Providers shall –
a. Provide evidence of a Memorandum of Understanding (“MoU”) with a local meter manufacturer or assembler (“LMMA”) for the fulfilment of a
minimum 30% local content threshold. Upon securing orders for meters from DisCos, eligible MAPs shall submit evidence in support of the
fulfilment of the minimum threshold of 30% local content.

“b. Hold a valid MAP Permit issued by the Commission.
c. Submit details of proposed meter installers with valid NERC certification as
a Meter Service Provider (“MSP”) for the installation of meters.

THE COMMISSION HEREBY ORDERS AS FOLLOWS –
DisCos shall utilise NGN28,000,000,000 (Twenty-Eight Billion Naira only) of the MAF scheme for Tranche B apportioned in accordance with their respective contributions as at the July 2025 market settlement and detailed in Schedule

“1, for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.
The Commission shall adopt the median DisCo MAP online bid prices for the August 2025 bid cycle as the final prices for all meter categories.

“Theevaluation of all bids in respect of Tranche B shall be on the basis of meterstock availability and technical assessment.
DisCos shall, within 10 (ten) days from the effective date of this Order, conduct a transparent procurement process for the selection and execution of a contract with MAPs with verified and ready-for-deployment meter stock for the
metering of end-use customer meters under the MAF scheme.

“DisCos shall, no later than 15 (fifteen) days from the date of the Order, submit to the Commission a list of their selected MAPs, details of meter inventory,
including meter types, brand names, serial numbers, and meter location, to obtain a “No-Objection” approval from the Commission.
Selected MAPs shall, within 7 (seven) days of the Commission’s No-Objection
approval of the procurement process, deliver 100% of the contracted meter
volume to the DisCo’s warehouse which shall be verified by the Commission.

“Where the selected MAP fails to deliver the contracted meter quantities within
the 7- day timeframe, supply of the outstanding meter quantities shall be
opened up to another MAP on a first-come, first-served basis. Each delivery shall be certified by a Store Receipt Voucher (“SRV”) issued by the DisCo.

“F. Upon delivery of the contracted meter stock, DisCos shall on behalf of the MAPS, submit a request to the Fund Manager for the payment of 60% of the contract sum, accompanied by the SRV. Each MAP shall submit a Performance Bond in respect of the meter installation, issued in favour of the Fund Manager by a licensed commercial bank in Nigeria.

“The Performance Bond shall be equivalent to 5% of the total contract
value and shall remain valid for a minimum period of 90 (ninety) days from the date of issuance.

“H. The balance of 40% of the contract sum shall be payable upon the verified installation of the entire contracted quantity by the Fund Manager.
1. DisCos shall ensure that all the necessary resources and network clearance required by the MAPs to install meters based on installation plans are provided and/or completed.

“J. Where a DisCo elects to move an existing customer’s connection point to a pole or high wall to ensure revenue protection, such DisCo shall bear the cost for the relocation.

“K. MAPs shall ensure that they obtain the necessary permits and clearances required to fully deploy meters under Tranche B within the installation time
frame specified by the Commission, including NEMSA certification seals.

“L. Where the non-installation of meters is directly attributable to DisCo’s failure to provide the required network clearance or failure to furnish accurate KYC information to the MAP within the stipulated installation period, such DisCo shall be liable to a penalty which shall be equivalent to the total cost of the uninstalled meters. Penalty shall be deducted from the DisCo’s approved
Administrative Operating Expenditure (“Admin OpEx”).

“All contracts for the supply and installation of meters shall be filed with the Commission.

“N. All parties under the MAF scheme shall exhibit the highest degree of public trust and ethical standards and shall not engage in any conduct that may constitute unfair practice or conflict of interest.

“O. DisCos and MAPs shall ensure full compliance with the FM’s Operational
Process Manual for Tranche В.

“P. The installation of meters shall be completed by 31 December 2025.
Q. Parties shall file the following reports with the Commission.”

NERC further ordered that, “DisCos shall file audited reports under the Uniform System of Accounting,
clearly reporting the performance of the MAF metering programme.

“S. This Order is issued without prejudice to relevant provisions of the
MAP&NMMR and other Regulations of the Commission not specifically
mentioned herein.”