Nigeria’s electricity regulator has ordered power distribution companies to refund more than 20-billion-naira (US$13 million) to consumers who paid for their own electricity meters under the Meter Asset Provider (MAP) programme, officials said Thursday.
The directive, issued by the Nigerian Electricity Regulatory Commission (NERC), requires distributors to reimburse customers within 12 months, starting March 1, 2026. It comes as part of ongoing reforms aimed at improving metering, reducing estimated billing, and strengthening revenue collection in the country’s electricity sector.
“The refunds must be applied directly to the accounts of affected customers, and distributors are required to submit regular reports on repayment progress,” NERC said in a statement. The regulator emphasized that the accelerated repayment is critical for the success of the MAP programme and for maintaining trust in the electricity sector.
The MAP programme, launched in 2018, allows consumers to purchase meters from licensed providers when distribution companies cannot install them promptly. The initiative was intended to expand access to electricity meters, curb the widespread use of estimated billing, and improve accountability in the sector.
Over the years, arrears have accumulated, leaving a total of 20.33 billion naira yet to be refunded as of December 31, 2025. By enforcing the 12-month repayment timeline, NERC aims to ensure full compliance and clear the backlog of unpaid meters.
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Industry observers say the policy could restore consumer confidence and accelerate Nigeria’s drive to achieve universal metering. According to NERC, nearly seven million smart meters are scheduled for nationwide installation over the next few years, complementing the MAP programme and reducing the long-standing dependence on estimated bills, which often led to disputes and overcharging.
The reforms come amid broader financial challenges in the electricity sector. Despite Nigeria’s abundant energy resources, distributors continue to face funding gaps caused by unpaid bills and tariff shortfalls. Government data show that in the first quarter of 2025, the federal government spent 536.4 billion naira ($350 million) on electricity subsidies to cover the gap between consumer tariffs and the actual cost of power. These subsidies accounted for roughly 59 percent of the billed electricity costs, underscoring the financial strain on the system.
NERC said the repayment directive is not only a step toward consumer protection but also a signal to distribution companies that transparency and adherence to regulations are non-negotiable. By ensuring that consumers who self-funded their meters are reimbursed, the regulator aims to create a more accountable and sustainable electricity ecosystem.
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The MAP programme has been a key instrument in Nigeria’s electrification strategy, particularly in areas where the existing distribution network struggles to meet demand. Under the initiative, consumers can purchase approved meters and begin immediate use, while distributors gradually reimburse the cost through bill credits. The new directive accelerates that process and provides a clear legal framework for enforcement.
Electricity analysts say that timely implementation of the refunds could also encourage further private-sector participation in metering and infrastructure projects, helping to alleviate chronic energy deficits in urban and rural areas.
“The effective functioning of the MAP programme is crucial to reducing the reliance on estimated bills, improving collections, and boosting investor confidence in Nigeria’s power sector,” said an industry observer familiar with the reforms.
NERC’s action reflects a broader government push to modernize the electricity system, increase efficiency, and reduce the need for heavy subsidies. By ensuring consumers are reimbursed for their out-of-pocket expenses, the regulator hopes to create a fairer, more transparent market while paving the way for smart meter adoption nationwide.
The regulator has warned distribution companies that failure to comply could result in sanctions, emphasizing that protecting consumer rights is a top priority in ongoing sector reforms.
