lectricity distribution companies (DisCos) have begun distributing prepaid meters at no upfront cost to customers, primarily targeting Band A and some Band B consumers.

This development follows recent remarks by the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, who accused DisCos of neglecting available meter stock for distribution.

At the 4th NESI Stakeholders Meeting in Abuja, Oseni revealed that 600,000 to 700,000 meters are currently available nationwide. He urged utilities to improve rollout speed and customer awareness, stressing that the government had already invested in the meters, so the DisCos must act.

NERC Commissioner for Corporate Services, Nathan Shatti, criticized DisCos for behaving as though they were providing a favor to customers. Highlighting poor performance in Meter Asset Provider (MAP) refunds and installations, Shatti pointed out that Abuja and Kano DisCos achieved only 2% compliance on refunds.

Addressing the backlog of paid-for but uninstalled meters, he rejected technical excuses, warning: “If your network is not ready for metering, do not collect people’s money.” Shatti emphasized that failing to install meters or address transformer issues leads to revenue losses, urging utilities to act promptly. He also noted that over 350,000 meters still require migration to the new STS standard, demanding immediate cleanup of obsolete data.

Distribution is currently ongoing across all franchise areas. Sunday Oduntan, Chief Executive of the Association of Nigerian Electricity Distributors, confirmed that the meters are being distributed nationwide at no direct cost to consumers.

However, Oduntan clarified that the meters were procured by the federal government but will be repaid by the DisCos over ten years. “The meters are not free; the DisCos are expected to cover the cost. There’s no free lunch. The meters must be paid for,” he said.

He added that under the MAP programme, customers who had previously purchased meters will still receive refunds through credit over time, separate from the current free meter rollout. Oduntan emphasized that DisCos must educate customers about refunds to avoid misunderstandings about billing and units.

Metering Performance Update

Nigeria’s metering performance improved between September and October 2025, with 187,765 new electricity customers metered nationwide. NERC’s latest factsheet shows 80,943 customers were metered in September and 106,822 in October, increasing the national metering rate from 55.37% to 56.07%.

During this period, Nigeria’s active electricity customer base rose from 12,030,315 to 12,071,018, while metered customers increased from 6,661,564 to 6,768,386, leaving 5,302,632 still on estimated billing.

Ikeja Electric recorded the highest metering rate at 85.59%, followed by Eko Electric at 84.75% and Abuja Electric at 75.82%. Conversely, Yola, Jos, Kaduna, and Kano DisCos remained below 35%, with Yola Disco lowest at 28.92%. Aba Power achieved the most significant progress, raising its metering rate from 69.49% to 78.20% with 18,906 new installations.

Despite gains, over 5.3 million customers remain unmetered. Experts suggest that continued efforts could bring Nigeria closer to universal metering by the end of 2025.

DisCos Receive N28 Billion for Metering

In October, NERC approved the disbursement of N28 billion to DisCos under the second phase of the Meter Acquisition Fund (MAF) to meter all outstanding Band A customers free of charge. The initiative, part of the Presidential Metering Programme, also targets Band B customers to reduce the national seven-million-meter deficit.

The funds will be allocated proportionally across DisCos, with Ikeja Electric receiving the highest allocation of N5.47 billion, followed by Eko DisCo (N4.36 billion), Ibadan DisCo (N4.26 billion), and Abuja DisCo (N3.31 billion). Yola and Jos received the lowest allocations, N231 million and N794 million, respectively.

NERC’s order requires DisCos to begin procurement within 10 days, submit selected meter providers for approval within 15 days, and ensure full installation by December 31, 2025. Delays arising from DisCos’ failures, such as inaccurate customer data or lack of network readiness, may attract penalties.

The Meter Acquisition Fund aims to offset DisCos’ limited creditworthiness and accelerate the closure of Nigeria’s metering gap, enhancing service quality, reducing energy theft, and safeguarding revenue.