NERC approves ₦30 billion to give free meters to unmetered Band A and Band B electricity customers
Key findings
- NERC's order on Tranche C of the Meter Acquisition Fund commits ₦30 billion, effective 2 November 2026, Nairametrics and Daily Trust reported.
- The money is shared among the 11 distribution companies in proportion to what each paid into the fund.
- Meter providers are paid 70% on verified delivery and 30% once installation is confirmed, at prices capped by the September 2026 bid cycle.
- Meters are free to customers, and every installation under this tranche must be finished by 31 May 2027.
The Nigerian Electricity Regulatory Commission (NERC) has approved ₦30 billion for the third tranche of the Meter Acquisition Fund, which pays for free prepaid meters, Nairametrics and Daily Trust reported on 10 November. The order operationalising Tranche C took effect on 2 November 2026 and forms part of the Presidential Metering Initiative.
The money is meant to meter all remaining unmetered Band A customers, who are promised the longest hours of supply, and to accelerate metering of Band B customers. It will be shared among the 11 distribution companies (DisCos) in proportion to what each contributed to the fund, with installations spread across the states in each franchise area.
How the order works
- DisCos must buy through a transparent process from eligible local meter manufacturers and assemblers and meter asset providers with verified stock.
- Prices are capped at the median of the national meter asset provider online bids in the September 2026 bid cycle.
- Providers receive 70% of their payment when delivery is verified and the remaining 30% once NERC confirms installation.
- Every meter is free to the customer and must carry the DisCo's name, the tranche and the words "NOT FOR SALE".
- A DisCo that moves a customer's connection point to protect its revenue bears the cost, and DisCos whose defaults hold up installation face sanctions.
- All supply and installation contracts must be filed with NERC, and every Tranche C installation must be completed by 31 May 2027.
The tranche follows ₦28 billion released to DisCos under Tranche B in October 2025, according to Nairametrics. In March 2026 the commission ordered DisCos to refund ₦20.33 billion to customers who had paid for meters under the meter asset provider scheme.
Why it matters
Unmetered customers are billed by estimate, a long-running source of disputes with DisCos and of lost revenue for the sector. Band A customers pay the highest tariffs, so metering them reduces disputes where the bills are largest. Payment tied to confirmed installation, rather than delivery alone, is the order's main safeguard against meters sitting in warehouses.
What to watch
- How quickly DisCos complete procurement and begin installing under the new price caps.
- Whether NERC publishes progress against the 31 May 2027 deadline, and uses the sanctions it has set out.
- Whether a further tranche follows to cover the rest of Band B and lower bands.
Methodology
This piece is based on Nairametrics' and Daily Trust's reports of NERC's order on Tranche C of the Meter Acquisition Fund (Order No. NERC/2026/121), published on 10 November 2026. The figures for earlier tranches and refunds are as Nairametrics reported them.