NEWS
NERC Orders Electricity Distribution Companies to Refund ₦20.33 Billion to Consumers Over Unpaid Meter Costs, Mandates Automated Reimbursements and Strict Compliance Framework
The Nigerian Electricity Regulatory Commission (NERC) has ruled in favour of electricity consumers across Nigeria, directing electricity distribution companies (DisCos) to refund a total of ₦20.33 billion in outstanding payments for meters purchased by customers under the Meter Asset Provider (MAP) scheme.
The ruling was contained in Order No: NERC/2026/025, an amendment to the commission’s earlier 2023 directive on meter reimbursements. The order was signed on February 27, 2026, by the Chairman of NERC, Musiliu Oseni, and the Commission’s Legal, Licensing and Compliance Commissioner, Dafe Akpeneye.
According to the order, all electricity distribution companies must recover and fully disburse the outstanding funds to affected customers within a 12-month period beginning March 1, 2026.
The Meter Asset Provider (MAP) framework was introduced to address Nigeria’s longstanding metering gap by allowing customers to purchase electricity meters directly, with the understanding that distribution companies would refund the cost through energy credits on their electricity bills over time.
However, NERC observed that the pace of reimbursement by DisCos had remained significantly slow over the years, leaving many consumers yet to recover the money they paid for meters.
The commission revealed that as of December 31, 2025, electricity distribution companies had failed to refund a total of ₦20.33 billion owed to customers who procured meters under the MAP programme.
The new directive is designed to eliminate repeated delays in refunds, improve transparency in the reimbursement process, and restore consumer confidence in Nigeria’s electricity market.
“In February 2026, the commission reviewed the level of compliance of DisCos with the expected reimbursement to customers who have paid for meters under the MAP framework.
According to the new order, DisCos have an outstanding amount of ₦20.33bn to reimburse customers for meters procured under the MAP framework as at 31 December 2025.
Under the revised order, the electricity regulator directed that all refunds must now be fully automated within customers’ billing systems, ensuring transparency and preventing manual delays.
The commission explained that once a MAP meter is activated, its total cost must immediately appear as credit in the customer’s account and be gradually refunded through monthly energy credits over an approved amortisation period.
“DisCos shall ensure that the total cost of a MAP meter is recognised as credit on the customer’s account upon activation of the meter and disbursed automatically as monthly credits over the approved amortisation period.”
NERC also issued strict instructions prohibiting distribution companies from deducting reimbursement credits to settle old debts owed by customers.
“DisCos shall not offset meter reimbursement credits against customer legacy debts; the items must be treated separately,” the order stated.
The commission further clarified how the reimbursement will appear in different billing systems.
For prepaid meter users, electricity distribution companies must automatically generate monthly tokens representing the reimbursement value, while postpaid customers must see the refund reflected as a separate credit entry on their electricity bills.
NERC explained the process in detail:
“For customers with prepaid meters, no later than the 4th day of every month, the DisCo’s billing system will automatically generate a token with an energy value equivalent to the monthly reimbursement which the customer is due to receive over the 120-month amortisation period based on the prevailing tariff for the customer.
“For post-paid customers, the monthly reimbursement of the cost of a MAP meter shall appear as a distinct credit line item which is expected to be subtracted from the customer’s total payable for the month.”
To ensure strict compliance with the directive, the commission has ordered all distribution companies to submit monthly compliance reports detailing reimbursements made to customers.
“All DisCos shall file monthly reports with the Commission detailing the total monetary value of the reimbursement to customers through energy credit, in accordance with the template approved by the Commission.
“All DisCos shall establish a dedicated email address for the receipt of complaints from customers who have not received MAP meter cost reimbursements. Details of such complaints, including the status of their resolution, shall form part of the monthly compliance reports submitted to the commission,” it said.
To clear the backlog of unpaid reimbursements, the commission ordered electricity distribution companies to accelerate the repayment schedule over a one-year period.
“To recover the sum of N20.33bn that was not reimbursed to customers as at 31 December 2025, DisCos shall accelerate the rate of recovery for the affected customers over a 12-month period commencing from 1 March 2026,” the order added.
Under the accelerated arrangement, prepaid customers will receive two reimbursement tokens each month, while postpaid customers will see two separate credit entries on their bills until the arrears are fully cleared.
The directive represents one of the most significant consumer-protection interventions in Nigeria’s electricity sector, reinforcing regulatory oversight and compelling distribution companies to honour their financial obligations to customers.