The Nigerian Electricity Regulatory Commission (NERC) has approved N30bn for the third phase of its Meter Acquisition Fund to provide free electricity meters to unmetered Band A customers and increase coverage among Band B consumers.

The regulator has also given electricity distribution companies (DisCos) until May 31, 2027, to complete installations under the programme, warning that customers must not be charged for the meters.

The approval was announced in Order No. NERC/2026/121, which took effect on November 2, 2026, and was published on the commission’s official X account on Tuesday.

According to the commission, the N30bn allocation will be distributed among the country’s 11 electricity distribution companies based on their respective contributions to the Meter Acquisition Fund.

The initiative is part of the Federal Government’s Presidential Metering Initiative, which aims to address Nigeria’s electricity metering deficit, reduce estimated billing and improve transparency in electricity consumption and payment.

NERC directed the distribution companies to procure meters through transparent bidding processes involving qualified local manufacturers, assemblers and Meter Asset Providers with verified stocks.

To ensure accountability, the commission has introduced a payment structure under which 70 per cent of contract payments will be released after verification of delivered meters, while the remaining 30 per cent will be paid after installation has been confirmed.

The regulator also prescribed maximum procurement prices based on the median national bids submitted by Meter Asset Providers during the September 2026 bidding exercise.

NERC warned that all meters supplied under the programme must be installed free of charge, adding that every unit must carry the relevant DisCo’s name, the applicable funding tranche and the inscription “NOT FOR SALE”.

The commission further stated that electricity distribution companies must bear the cost of relocating existing customer connection points when such changes are initiated for revenue protection purposes.

It added that sanctions would apply to DisCos whose failures or delays prevent the timely installation of meters.

To prevent misuse of the approved funds, NERC has also introduced monitoring and reporting requirements for the fund manager, distribution companies and participating meter providers.

The commission directed that all contracts for meter supply and installation under the third phase must be submitted to it for oversight.