Electricity distribution companies (DisCos) across Nigeria have started rolling out prepaid electricity meters to customers at no cost, following strong pressure from the Nigerian Electricity Regulatory Commission (NERC) to reduce estimated billing and close the country’s metering gap.
The free meters, estimated at between 600,000 and 700,000 units, are mainly being allocated to customers under Band A and some Band B categories. The rollout comes weeks after NERC accused DisCos of failing to collect and distribute already available meters despite government support.
At a recent power sector stakeholders’ meeting in Abuja, NERC Chairman, Musiliu Oseni, said the Federal Government had already invested heavily in the procurement of meters and challenged DisCos to speed up distribution and improve public awareness. He warned that companies delaying installations risk facing regulatory penalties.
NERC Commissioner for Corporate Services, Nathan Shatti, criticised some DisCos for poor performance, especially in refunding customers who had paid for meters under previous schemes. He disclosed that Abuja and Kano DisCos recorded only about two per cent compliance in refunding such customers and insisted that utilities should not collect money if they are unable to install meters.
Shatti also revealed that over 350,000 meters are yet to be migrated to the new standard system, directing DisCos to urgently clean up outdated data. He noted that failure to meter customers leads to revenue losses and weak service delivery.
Confirming the rollout, the Chief Executive of the Association of Nigerian Electricity Distributors, Sunday Oduntan, said free meter distribution is ongoing nationwide. However, he explained that although customers are not paying upfront, the meters are not truly free, as DisCos are expected to repay the cost to the Federal Government over a 10-year period.
He added that customers who previously paid for meters under the Meter Asset Provider scheme would still receive refunds through electricity credits over time, urging DisCos to properly educate customers to avoid confusion over billing.
Meanwhile, NERC data shows that Nigeria’s metering rate improved between September and October 2025, with nearly 188,000 new customers metered nationwide. Despite the progress, more than 5.3 million electricity users remain unmetered.
To accelerate deployment, NERC recently approved the release of ₦28 billion under the second phase of the Meter Acquisition Fund to provide free meters for all unmetered Band A customers and speed up coverage for Band B users. DisCos have been directed to complete installations funded under the scheme by the end of December 2025.
Regulators say sustained implementation of these programmes is key to ending estimated billing and achieving universal metering across the country.
