- Electricity DisCos in Nigeria roll out prepaid meters at no upfront cost amid mounting pressure from NERC
- NERC allocates N28bn to enhance metering efforts, targeting completion by December 31, 2025
- Over 5.3 million customers remain on estimated billing, despite recent progress in metering rates
Electricity distribution companies (DisCos) across Nigeria have begun rolling out prepaid meters to customers at no upfront cost, following fresh pressure and funding support from the Nigerian Electricity Regulatory Commission (NERC).
The nationwide deployment targets between 600,000 and 700,000 meters, with priority given to Band A and some Band B customers.
Credit: Novatis
Source: Getty Images
The rollout follows sharp criticism from NERC Chairman Musiliu Oseni, who accused DisCos of dragging their feet despite the availability of meters already procured under federal intervention programmes.
Why DisCos are under pressure to meter customers
At the 4th Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting in Abuja, Oseni revealed that hundreds of thousands of meters were sitting idle while customers remained trapped under estimated billing.
He challenged DisCos to improve publicity and speed up installations, stressing that government investment must translate into real consumer relief.
NERC Commissioner for Corporate Services, Nathan Shatti, was even more direct. He warned DisCos to stop acting as if metering customers was a favour, pointing out that some utilities, including Abuja and Kano DisCos, recorded just two per cent compliance in refunding customers who paid for meters under the Meter Asset Provider (MAP) scheme.
He dismissed technical excuses, stating that DisCos should never collect money if their networks are not ready for meter installation.
Are the meters truly free?
Confirming the rollout, the Chief Executive of the Association of Nigerian Electricity Distributors, Sunday Oduntan, said meters are currently being distributed across franchise areas nationwide at no cost to customers.
However, he clarified that while customers are not paying upfront, the meters are not “free” in the absolute sense.
The Federal Government procured the meters, but DisCos are expected to repay the cost over 10 years.
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According to Oduntan, the initiative is still a major step toward closing Nigeria’s metering gap, even though the available meters are insufficient to cover all unmetered customers immediately.
What happens to customers who paid under MAP?
Oduntan explained that customers who previously paid for meters under the MAP scheme are entitled to refunds. These refunds are typically issued as energy credits over time during electricity vending.
He admitted that poor communication has fueled mistrust, as many customers are unaware that the extra units they receive during vending often represent refunds.
DisCos have now been instructed to clearly educate customers on how and when these refunds will be applied.
How to get a free prepaid meter
Customers eligible for the ongoing rollout do not need to pay or register through third parties.
According to a Punch report, distribution is handled directly by DisCos based on feeder classification, transformer readiness, and tariff band status.
Consumers are advised to monitor official announcements from their DisCo, cooperate during verification exercises, and ensure their premises meet basic installation requirements such as safe wiring and accessible meter points.
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Metering gains and persistent gaps
NERC data shows measurable progress. Between September and October 2025, 187,765 new customers were metered nationwide, pushing Nigeria’s metering rate from 55.37 per cent to 56.07 per cent.
Ikeja Electric led the pack with an 85.59 per cent metering rate, followed by Eko Electric at 84.75 per cent and Abuja Electric at 75.82 per cent. In contrast, Yola, Jos, Kaduna, and Kano DisCos remain below the 35 per cent threshold.
Despite improvements, over 5.3 million customers are still on estimated billing.
NERC releases N28bn to accelerate metering
To fast-track progress, NERC approved the disbursement of N28bn under Tranche B of the Meter Acquisition Fund (MAF).
The funds are dedicated to metering all outstanding Band A customers and accelerating installations for Band B customers at no cost.
DisCos face strict timelines for procurement, delivery, and installation, with penalties looming for delays caused by internal failures.
All installations under Tranche B must be completed by December 31, 2025.
A push toward universal metering
With sustained rollout and tighter regulation, Nigeria’s electricity sector appears closer than ever to breaking free from estimated billing.
Credit: Novatis
Source: UGC
While challenges remain, regulators insist that metering customers is no longer optional, but central to service quality, revenue protection, and consumer trust.
Eko, Ikeja, Abuja DisCos collect highest bills
Legit.ng previously reported that Eko, Ikeja, and Abuja Electricity Distribution Companies recorded the highest bill collection rates among DisCos in Nigeria, a report by the Nigerian Electricity Regulatory Commission (NERC) has revealed.
The report measured the performance of DisCos in recovering billed revenue (collection efficiency), noting that DisCos received a total of N564.71 billion out of N742.34 billion in the second quarter (Q2) of 2025.
The NERC noted that the collection efficiency rate for the period under review was 76%, a mild improvement from the 74% recorded in the previous quarter.
Source: Legit.ng