DisCos Begin Free Metering as NERC Moves to Close Nigeria’s Metering Gap

Electricity distribution companies (DisCos) have commenced the rollout of prepaid electricity meters to customers at no upfront cost, following renewed regulatory pressure by the Nigerian Electricity Regulatory Commission (NERC) to address the country’s persistent metering deficit.

Findings indicate that the ongoing distribution, which cuts across several DisCo franchise areas, is largely targeted at customers on Tariff Band A and select Band B feeders.

The development comes amid sharp criticism from NERC leadership over what it described as the slow uptake and deployment of already available meters by the utilities.

Speaking at the 4th Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting in Abuja, NERC Chairman, Musiliu Oseni, disclosed that between 600,000 and 700,000 meters are currently available nationwide but remain largely undistributed.

He accused DisCos of failing to collect and deploy the meters, despite significant government investment in the programme.

Oseni challenged the utilities to intensify public awareness and accelerate installation, stressing that the resources had already been committed.

“The government has made the investment. The DisCos need to step up,” he said.

NERC Commissioner for Corporate Services, Nathan Shatti, also faulted the performance of several utilities, particularly in the handling of refunds under the Meter Asset Provider (MAP) scheme.

He cited Abuja and Kano DisCos as having recorded only about two per cent compliance in refunding customers who had paid for meters.

Shatti rejected claims that technical challenges were responsible for delayed installations, warning DisCos against collecting money when their networks were not ready.

“If your network is not ready for metering, do not collect people’s money,” he said, adding that failure to install meters and transformers ultimately results in revenue losses for the utilities themselves.

He further revealed that more than 350,000 meters are yet to be migrated to the new Standard Transfer Specification (STS) platform, calling for an immediate cleanup of obsolete metering data.

Confirming the ongoing rollout, the Chief Executive Officer of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, said DisCos had begun distributing meters nationwide under a federally supported programme.

However, he clarified that while customers are not paying upfront, the meters are not “free” in real terms.

According to him, the Federal Government procured the meters, but DisCos are expected to repay the cost over a 10-year period. “There is no free food. The meters did not drop from heaven. Manufacturers must be paid, and the DisCos will refund the cost over time,” Oduntan explained.

He noted that the number of meters available remains limited compared to demand but described the initiative as a positive step toward reducing the metering gap.

Oduntan also distinguished the current rollout from the MAP scheme, under which customers who paid for meters are entitled to refunds through energy credits.

Many customers, he said, are unaware of how refunds are applied, often mistaking credited units for billing discrepancies.

He urged DisCos to improve customer education to prevent mistrust and misinformation.

On regulatory oversight, Oduntan maintained that NERC would impose sanctions where necessary, expressing confidence in the commission’s leadership to act decisively if DisCos fall short of expectations.

Meanwhile, official data from NERC show a gradual improvement in Nigeria’s metering performance. Between September and October 2025, 187,765 customers were newly metered nationwide, raising the national metering rate from 55.37 per cent to 56.07 per cent.

During the same period, the number of active electricity customers rose to over 12.07 million, with more than 5.3 million still on estimated billing.

Ikeja Electric recorded the highest metering rate at over 85 per cent, followed by Eko and Abuja DisCos.

However, Yola, Jos, Kaduna, and Kano DisCos remained below the 35 per cent mark, highlighting uneven progress across the sector.

To further accelerate deployment, NERC recently approved the disbursement of N28 billion to DisCos under the second phase of the Meter Acquisition Fund (MAF), targeted at metering all outstanding Band A customers and fast-tracking installations for Band B users.

The fund, part of the Presidential Metering Initiative, is to be shared among the 11 DisCos based on market contribution, with strict timelines imposed for procurement, delivery, and installation.

Under the order, all meters procured through the scheme are to be installed at no cost to customers, with DisCos required to complete installations by December 31, 2025.

NERC warned that penalties would apply where delays are traced to utility failures.

Despite the recent gains, regulators and sector observers agree that sustained enforcement and faster rollout are critical if Nigeria is to achieve universal metering after years of stalled progress.