In a startling disclosure, the Nigerian Electricity Regulatory Commission (NERC) has revealed that electricity distribution companies (DisCos) in Nigeria have largely abandoned their statutory duty of customer metering.
According to the commission’s Third Quarter 2025 report, DisCos funded only 90,172 meters nationwide from 2019 through September 2025, underscoring their limited role in closing Nigeria’s persistent metering gap.
The NERC report paints a concerning picture of the electricity sector, where the majority of meter installations are now driven by alternative frameworks rather than DisCo-financed initiatives.
Stakeholders argue that it is the responsibility of DisCos to meter all eligible customers at no cost, but evidence suggests that many utilities shifted this financial burden onto consumers, often with unfulfilled promises of refunds through energy credits.
DisCos Abandon Metering Duty: Installation Figures Paint a Bleak Picture
Data from NERC showed that under the DisCo-Financed Framework, only a marginal number of meters were deployed over the six-year period.
Between 2019 and 2023, 57,007 meters were installed, followed by 31,622 meters in 2024.
The first three quarters of 2025 witnessed an even sharper slowdown, with just 1,178 meters in Q1, 234 in Q2, and 131 in Q3 funded by DisCos.
Read more: http://DisCos install 228,614 meters in Q3 2025 — NERC updates power metering progress
The report highlighted that this meagre output was largely driven by two DisCos.
Ibadan Electricity Distribution Company installed a total of 37,156 meters, with 36,911 installed between 2019 and 2023, and only 245 meters deployed between 2024 and mid-2025.
Jos Electricity Distribution Plc recorded a total of 52,174 meters, largely due to a significant push in 2024 when 31,442 meters were deployed.
Other DisCos posted negligible figures. Enugu Electricity Distribution Company installed 597 meters between 2019 and 2023.
Kaduna Electricity Distribution Company deployed 149 meters in 2024, while Kano Electricity Distribution Company installed 96 meters during the same period.
Eko, Aba, Abuja, Benin, Ikeja, Port Harcourt, and Yola DisCos recorded zero meter installations under the DisCo-financed framework by the end of Q3 2025.
Metering Gaps Widen Amid Regulatory Directives
NERC emphasised that the lack of adequate metering continues to fuel disputes over estimated billing and exacerbates commercial losses in the power sector.
The regulator stressed that improved customer enumeration and accelerated meter deployment are crucial to reducing technical and commercial losses, and to enhancing revenue collection across the electricity market.
The report revealed that while DisCos abandoned metering duty, most installations in Q3 2025 were executed through alternative schemes.
The Meter Asset Provider (MAP) framework accounted for 176,302 meters, the Vendor-Financed framework contributed 44,104 meters, and the Distribution Sector Recovery Programme (DSRP), supported by the World Bank, deployed 7,902 meters.
Under the DisCo-Financed Framework, only 131 meters were installed in Q3 2025, representing a negligible 0.06% of the total 228,614 meters installed during the period.
NERC noted that the Meter Acquisition Fund, introduced in February 2023 via a surcharge embedded in allowed tariffs, aimed to facilitate metering for eligible customers, yet uptake remained low.
National Metering Rate Still Below Expectations
As of September 2025, only 6.66 million out of 12.03 million active registered electricity customers had been metered nationwide, reflecting a metering rate of just 55.37%.
NERC stated that the DSRP, backed by a $500 million World Bank loan, aims to deploy 3.2 million smart meters, but by the end of Q3 2025, only 7,902 had been installed.
Kaduna Electricity Distribution Company installed 175 meters under the Meter Acquisition Fund in Q3 2025, bringing total Tranche A installations to 107,461 meters.
The scheme’s Tranche B was operationalised in October 2025, granting DisCos access to N28 billion for metering Bands A and B customers.
DisCos Abandon Metering Duty Threatens Sector Growth
Analysts warn that the ongoing neglect of metering duties by DisCos threatens the growth and sustainability of the power sector.
Without comprehensive metering, estimated billing disputes are likely to continue, undermining consumer trust and escalating commercial losses.
NERC reiterated that it will continue to monitor DisCos’ compliance and urged electricity operators to prioritise customer metering as a regulatory imperative.
Experts further argue that DisCos abandoning metering duty undermines efforts to modernise the power sector and achieve efficient energy distribution.
The reliance on alternative frameworks, while beneficial in the short term, cannot replace the central role of DisCos in ensuring universal metering coverage.
As Nigeria pushes toward a more reliable and accountable electricity system, the need for strict enforcement, regulatory oversight, and accountability from DisCos remains urgent.
Stakeholders assert that failure to address these issues could compromise revenue collection, reduce investor confidence, and hinder the country’s broader energy transition objectives.
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