morganable business/Economy
NERC said it had established maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.
KaNo—
The Nigerian Electricity Regulatory Commission has approved N30bn for the third phase of the Meter Acquisition Fund to accelerate the installation of electricity meters for unmetered Band A customers and expand coverage among Band B consumers.
The regulator has also directed electricity distribution companies to complete all meter installations under the programme by May 31, 2027, warning that consumers must not be charged for meters provided through the initiative.
The commission disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, which took effect on November 2, 2026.
NERC announced the development in a statement published on its official X handle on Tuesday, saying the N30bn allocation would be distributed among the 11 electricity distribution companies according to their respective contributions to the fund.
The statement read, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.
“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund.
“The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”
The latest intervention is part of the Federal Government’s Presidential Metering Initiative, which seeks to address the country’s persistent electricity metering deficit, protect consumers from estimated billing and strengthen accountability in the power distribution system.
Under the arrangement, the distribution companies are required to conduct transparent procurement exercises involving eligible local meter manufacturers and assemblers, as well as Meter Asset Providers with verified meter stocks.
NERC said it had established maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.
The commission explained that the pricing framework was designed to promote transparency, prevent inflated procurement costs and ensure that the approved funds were used efficiently.
It also introduced a two-stage payment arrangement to strengthen accountability and ensure that participating providers deliver meters before receiving full payment.
Under the arrangement, 70 per cent of the contract payment will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.
The commission said the payment structure would encourage timely delivery and installation while reducing the possibility of financial irregularities in the implementation of the programme.
It further reiterated that all meters supplied and installed under the fund must be provided free of charge to electricity consumers, warning distribution companies and their agents against selling the meters.
To reinforce the directive and prevent the diversion of meters, NERC ordered that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.
The regulator also addressed concerns surrounding the relocation of customers’ existing electricity connection points.
According to the order, where a distribution company initiates the relocation of a customer’s connection point for revenue protection purposes, it must bear the associated costs rather than transfer the financial burden to the affected consumer.
The commission further warned that distribution companies could face sanctions where their defaults obstruct or delay meter installations, stressing that operators must ensure the programme is implemented within the stipulated deadline.
To prevent the diversion of funds and guarantee proper implementation, the regulator prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.
It also directed that all supply and installation contracts executed under Tranche C must be submitted to the commission for oversight.
NERC urged all stakeholders to comply with the provisions of the order, particularly those relating to procurement, installation, reporting and consumer protection.
The intervention comes amid persistent concerns over the country’s electricity metering deficit, which has left many consumers dependent on estimated billing.
The absence of functioning prepaid meters has continued to generate disputes between electricity consumers and distribution companies, with customers frequently complaining about bills they consider disproportionate to their actual electricity consumption.
The metering gap has also remained a major obstacle to transparency and accountability in Nigeria’s electricity market, as consumers without meters often have limited means of independently verifying their electricity consumption.
NERC said the new funding tranche was intended to accelerate the closure of the metering gap, strengthen revenue assurance for distribution companies, improve service delivery and protect electricity consumers.
The development comes as President Bola Tinubu has renewed his administration’s commitment to providing Nigerians with reliable electricity, promising to adopt a different approach to addressing the country’s power challenges.
Tinubu made the pledge on Tuesday during an All Progressives Congress rally at the Dutse Township Stadium in Jigawa State, where he outlined his administration’s priorities ahead of the 2027 general election.
The President criticised the existing electricity privatisation model, suggesting that his government would pursue a different strategy to improve power supply across the country.
He said, “We will provide reliable power, not the old privatisation that is not working.
“We will provide you with reliable power in this Nigeria.”
The latest promise echoes a commitment Tinubu made during a meeting with members of the Organised Private Sector in Lagos ahead of the 2023 presidential election.
At the meeting, the President pledged to provide constant electricity and end estimated billing, warning Nigerians against re-electing him if he failed to fulfil the promise, except he could provide adequate reasons for his inability to deliver.
His latest assurance comes as electricity consumers continue to grapple with inconsistent power supply, rising electricity tariffs and disagreements over billing practices.
Meanwhile, the President also outlined other priorities in the APC manifesto, including increased investment in healthcare, efforts to reduce the cost of living, strengthened national security and expanded economic opportunities.
The N30bn metering intervention is expected to contribute to the government’s broader electricity sector objectives, although its success will largely depend on the ability of distribution companies and participating meter providers to meet the installation deadline and comply with the commission’s consumer protection requirements.
For millions of Nigerians still without prepaid meters, the critical test will be whether the latest funding translates into timely installations, an end to estimated billing abuses and greater transparency in electricity charges.
