Why DisCos Abandon Metering Duty: Key NERC Report Insights

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By Sunday Adekunle

The persistent challenge of electricity metering in Nigeria continues to plague consumers, with new reports revealing a concerning trend: why are DisCos not metering customers as their primary responsibility? According to the Nigerian Electricity Regulatory Commission’s (NERC) Third Quarter 2025 report, electricity distribution companies (DisCos) have significantly underperformed in their core duty, funding only a fraction of the meters needed nationwide. This alarming data points to a widening metering gap, leaving millions of customers reliant on often contentious estimated billing and struggling to gain access to accurate consumption tracking.

NERC’s findings underscore a critical failure by DisCos to address one of their fundamental obligations. Between 2019 and the third quarter of 2025, these companies collectively funded a mere 90,172 meters. This figure represents an infinitesimally small contribution to bridging the substantial deficit, despite repeated regulatory directives urging operators to accelerate customer metering. The report highlights that the DisCo-Financed Framework has consistently accounted for only a marginal share of total installations over this six-year period.

One of the primary reasons why are DisCos not metering customers adequately stems from a perceived abandonment of this duty, often pushing the financial burden onto consumers. Stakeholders have long argued that it is the responsibility of DisCos to meter their customers at no additional cost. However, many customers report paying for meters with unfulfilled promises of refunds through energy credits, or worse, making payments without ever receiving an electricity metering guide Nigeria for installation. This practice exacerbates mistrust and financial strain on households and businesses.

What is the metering gap in Nigeria? The metering gap in Nigeria refers to the significant disparity between the total number of active electricity customers and those who have been provided with prepaid meters. As of September 2025, NERC reported that 6.66 million out of 12.03 million active registered electricity customers were metered, translating to a rate of just 55.37 percent. This gap fuels disputes and commercial losses.

The stark contrast between customer expectations and DisCo performance is evident when comparing prepaid meter vs estimated billing Nigeria. While prepaid meters offer transparency and control over electricity consumption, estimated billing often leads to inflated charges and disputes. The NERC report explained that DisCos installed only 57,007 meters between 2019 and 2023 under their direct funding model, with a slight increase to 31,622 meters in 2024. However, the pace dramatically slowed in 2025, with just 1,178 meters in Q1, 234 in Q2, and a paltry 131 in Q3.

The data reveals that the bulk of meters under the DisCo-financed model were deployed by just two companies: Ibadan Electricity Distribution Company and Jos Electricity Distribution Plc. Ibadan DisCo recorded 37,156 meters, predominantly between 2019 and 2023. Jos DisCo led with 52,174 meters between 2019 and 2025, including a significant 31,442 in 2024 alone. In stark contrast, companies like Eko, Aba, Abuja, Benin, Ikeja, Port Harcourt, and Yola electricity distribution companies recorded zero meter installations under this model by the end of Q3 2025, contributing nothing to the Nigeria electricity metering update.

Fortunately, alternative schemes have partially mitigated the impact of DisCo inaction. During Q3 2025, the majority of meter deployments were executed through frameworks like the Meter Asset Provider (MAP) framework, which accounted for 176,302 meters, and the Vendor-Financed framework, adding 44,104 meters. The Distribution Sector Recovery Programme (DSRP), supported by a $500m World Bank loan, also contributed 7,902 meters. Understanding the differences in MAP vs DisCo financed metering is crucial for consumers seeking to how to get a prepaid meter in Nigeria.

NERC’s report emphasized the critical role of these alternative programs, stating that 77.12 percent of metered customers in Q3 2025 were under MAP, 25.01 percent under Vendor Financed, and 3.46 percent under DSRP. The Meter Acquisition Fund (MAF), introduced in February 2023, also saw 175 meters installed by Kaduna Electricity Distribution Company in Q3 2025, with Tranche B operationalized in October 2025 to deploy an additional N28bn for Bands A and B customers.

The commission continues to warn that inadequate metering fuels disputes over estimated billing and deepens commercial losses across the power sector. The Nigeria electricity sector outlook 2026 hinges significantly on accelerated meter deployment and improved customer enumeration to boost revenue collection and reduce technical, commercial, and collection losses. For customers looking for best prepaid meters 2026 Nigeria, understanding the various schemes and regulatory push is essential.

Ultimately, the question of why are DisCos not metering customers remains central to the ongoing challenges in Nigeria’s power sector. While alternative frameworks offer some relief, the fundamental responsibility lies with the distribution companies. Their limited contribution, as highlighted by the NERC DisCo metering news today, necessitates stricter enforcement and a renewed commitment to fulfilling their obligation to provide accurate and transparent metering for all eligible customers, ensuring a more equitable and efficient electricity market for the future.

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