New directive mandates automated credits, bars offsetting against old debts, and compels monthly compliance reporting….
The Nigerian Electricity Regulatory Commission has directed electricity distribution companies to refund ₦20.33 billion owed to customers who paid for meters under the Meter Asset Provider framework.
The regulator ordered that the outstanding sum be recovered and fully repaid to affected customers within 12 months, beginning March 1, 2026.
Under the Meter Asset Provider scheme, customers bear the upfront cost of meters, with distribution companies reimbursing them over time through energy credits. However, the commission observed that reimbursements have progressed at a slow pace over the years, prompting fresh regulatory intervention.
The directive, titled Order No: NERC/2026/025, amends a 2023 order on meter cost reimbursements. It was signed on February 27, 2026, by NERC Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
According to the commission, as of December 31, 2025, distribution companies had failed to refund ₦20.33 billion to customers who procured meters under the MAP framework.
“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.
The review highlighted that DisCos have an outstanding amount of ₦20.33bn to reimburse customers for meters procured under the MAP framework as at 31 December 2025,” the order stated.
NERC said the revised framework is aimed at eliminating recurring delays, improving customer notification processes, and restoring credibility in the electricity market.
Under the new order, all reimbursements are to be fully automated through customers’ billing accounts. Distribution companies are required to recognise the total cost of a MAP meter as a credit immediately upon activation and disburse it automatically in monthly instalments across the 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,” the commission said.
The regulator further barred distribution companies from offsetting meter reimbursement credits against legacy debts owed by customers.
“DisCos shall not offset meter reimbursement credits against customer legacy debts; the items must be treated separately,” the order stated.
For prepaid customers, the commission directed that reimbursement must be issued in the form of monthly energy token. For postpaid customers, the refund must appear as a clearly identified credit line on monthly bills.
“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,” the order added.
To clear the ₦20.33 billion backlog, distribution companies are required to accelerate repayments over the 12-month window beginning March 1, 2026. Prepaid customers affected by the arrears will receive two tokens monthly, while postpaid customers will see two separate reimbursement entries reflected on their bills.
“To recover the sum of ₦20.33bn 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 stated.
NERC also introduced stricter monitoring measures. Distribution companies must submit monthly compliance reports detailing the total value of reimbursements issued through energy credits, in line with a commission-approved reporting template.
In addition, each DisCo is required to establish a dedicated email channel to handle complaints from customers yet to receive their MAP meter reimbursements. Updates on such complaints, including resolution status, must form part of the monthly reports submitted to the commission.
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