The Nigerian Electricity Regulatory Commission (NERC) has issued a fresh order directing Electricity Distribution Companies (DisCos) to refund a total of ₦20.33 billion to customers who paid for meters under the Meter Asset Provider (MAP) scheme.
This directive is outlined in Order No. NERC/2026/025, signed on February 27, 2026, by NERC Chairman Musiliu Oseni and Commissioner Dafe Akpeneye
NERC said the order, which took effect on March 1, 2026, gives DisCos a 12-month deadline to complete all reimbursements to customers.
Why the Order was Issued
Under the MAP framework, customers pay upfront for meters and are supposed to be reimbursed by DisCos through monthly energy credits over time.
NERC said section 8(1)F of the Meter Asset Provider and National Mass Metering Regulations (MNMMR) issued by the Commission in 2021 mandates DisCos to reimburse customers who procure prepaid meters under the MAP framework through installments of energy credits over a maximum period of 36 months.
The Commission said it had issued an order on March 20, 2023, directing the DisCos to reimburse customers the cost of meters procured under the MAP framework. It said the 2023 order reviewed the reimbursement period from 36 months to 120 months with effect from April 1, 2023.
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However, following a review of the compliance of the DisCos in February 2026, NERC said it discovered an outstanding amount of ₦20.33 billion that ought to be reimbursed to customers for meters procured 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 ₦20.33 billion to reimburse customers, for meters procured under the MAP framework as at 31st December 2025,” NERC stated.
It said the result of the review is further substantiated by the volume of complaints it has received concerning delays and deficiencies in the implementation of the reimbursement of the meter cost to customers.
NERC explained that the primary goal of this new order is to resolve these accumulated arrears quickly, streamline the process to prevent future delays, and restore consumer confidence in the sector.
Key Provisions of the Refund Order
The NERC order introduces strict automation and transparency rules to ensure customers receive their credits efficiently.
Full Automation: The order says DisCos must fully automate the reimbursement process. Upon meter activation, the total cost of the meter must be automatically recognized as a credit on the customer’s account and disbursed in monthly installments.
Recovery Plan: To clear the ₦20.33 billion backlog, the order stipulates that affected customers will receive their outstanding reimbursements at an accelerated rate through 12 equal monthly installments, starting from March 1, 2026.
How Refunds will be Applied
Prepaid Customers: The order says that for prepaid customers, the DisCo’s billing system will automatically generate an extra token with an energy value equivalent to the monthly reimbursement. This token will be sent to the customer’s registered phone number and email by the 4th of every month.
Postpaid Customers: For postpaid customers, it said the monthly reimbursement will appear as a distinct credit line item on their monthly bills, which will be subtracted from their total payable for the month.
Prohibition on Offsetting Debts
The order clearly states that DisCos shall not offset the meter reimbursement credits against any legacy debts a customer might owe. The two must be treated separately, it clarified.
Ensuring Compliance and Transparency
To monitor compliance and ensure transparency, NERC has put some measures in place, including filing monthly reporting by all DisCos with NERC, detailing the total monetary value of reimbursements provided to customers through energy credits.
The Order also directs DisCos to create complaint channels, such as a dedicated email address for receiving complaints from customers who have not yet received their MAP meter cost reimbursements. They are also required to include complaint status updates in their regulatory submissions.
The order also mandates DisCos to issue monthly communication to customers (whether a token for prepaid or a bill for postpaid), containing key details, including the initial cost of the meter, the total credits applied to date, and the outstanding balance.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
