FG Approves N28bn For Prepaid Meters

The Federal Government has approved the disbursement of N28 billion to electricity distribution companies (DisCos) for the purchase and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.

The Nigerian Electricity Regulatory Commission (NERC), has, therefore, directed all DisCos to utilise the N28 billion fund to provide meters for Band A and Band B customers within their networks and added that the allocation would be distributed according to each company’s market collection share as of July 2025.

It also said that DisCos had 10 days from the effective date of the Order (October 6, 2025) to conduct transparent procurement processes and select Meter Asset Providers (MAPs) with verified ready-for-deployment meter stock. Selected MAPs must be submitted to NERC within 15 days for “NoObjection” approval.

NERC in Order No: NERC/2025/107 published on its website, seen by New Telegraph yesterday also stated that the MAF provides a financial mechanism for accelerating meter rollout to unmetered customers at no cost, while ensuring a credible revenue stream that supports long-term financing for DisCos.

It added that the development was aimed at improving Nigeria’s poor metering density, which has long contributed to huge commercial losses, estimated billing controversies, and widening market shortfalls across the power sector.

It stated that to support local manufacturing, the commission had mandated a minimum 30% local content threshold for all participating MAPs, backed by agreements with domestic manufacturers or assemblers.

It added that under the new framework, 60 per cent of contract funds will be released to the MAP after verified meter delivery, while the remaining 40 per cent will be paid upon confirmation of full installation.

It warned that any DisCo responsible for delays due to poor network clearance or inaccurate customer information would face penalties equal to the cost of uninstalled meters. It added that all installations under Tranche B are to be completed by December 31, 2025, according to the order.