Lagos Electricity Consumers To Benefit As NERC Approves ₦30bn Free Meter Scheme For Band A, B Customers
By Sherif Salau
Lagos electricity consumers stand to gain from the ₦30 billion approved by the Nigerian Electricity Regulatory Commission (NERC) for the provision of free prepaid meters to Band A and B customers. The funds will be allocated among the 11 electricity distribution companies (DisCos) in proportion to their contributions to the Fund. In Lagos, this covers customers served by Ikeja Electric and Eko Electricity Distribution Company.
According to NERC, the primary aim is to meter all remaining unmetered Band A customers while accelerating installations for Band B consumers. Distribution is expected to be equitable across states within each DisCo’s franchise area. The initiative forms part of the broader Presidential Metering Initiative designed to close Nigeria’s long-standing metering gap, reduce estimated billing, improve revenue collection and enhance service delivery.
Under the order, DisCos must conduct transparent procurement processes involving eligible Local Meter Manufacturers and Assemblers (LMMAs) and Meter Asset Providers (MAPs) that hold verified meter stock. Maximum procurement prices have been set based on the median national MAP online bid prices from the September 2026 bid cycle.
Payment to selected providers will follow a two-stage structure: 70 per cent upon verified delivery of meter stock, and the remaining 30 per cent after confirmation that installation has been completed. Critically, NERC has directed that all meters supplied and installed under the programme must be provided free of charge to customers. Every meter is required to display the name of the relevant DisCo, the applicable MAF tranche and the clear inscription “NOT FOR SALE”.
The Commission has set a firm deadline of 31 May 2027 for the completion of all installations under Tranche C. It has also put in place provisions for sanctions where a DisCo’s default or failure delays or prevents installation. Where a DisCo relocates a customer’s connection point for revenue-protection reasons, the cost of that relocation will be borne by the DisCo.
The latest ₦30 billion allocation brings total funding approved under the Meter Acquisition Fund to ₦79 billion, following earlier tranches of ₦21 billion and ₦28 billion. As of August 2026, Nigeria’s metering rate stood at approximately 63 per cent, with millions of active customers still relying on estimated billing.
For many Lagos households and businesses on Band A and Band B feeders, the announcement offers the prospect of clearer billing, greater control over electricity consumption and an end to disputes arising from estimated bills. Whether the scheme translates into timely and widespread installations will depend on how effectively the DisCos execute the procurement and deployment process in the months ahead.
