The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies in Nigeria to refund more than ₦20.33bn owed to customers who paid for prepaid meters under the Meter Asset Provider (MAP) scheme.
According to the commission, electricity distribution companies, commonly known as DisCos, must complete the repayment within 12 months beginning March 1, 2026.
The directive was issued through Order No: NERC/2026/025, signed by NERC Chairman Musiliu Oseni and the commission’s Legal, Licensing and Compliance Commissioner Dafe Akpeneye.
Why Customers Are Getting Meter Refunds
Under the Meter Asset Provider framework introduced by the Nigerian Electricity Regulatory Commission, electricity customers who purchased their own prepaid meters are supposed to receive refunds through energy credits applied to their electricity accounts.
However, NERC’s compliance review revealed that many electricity distribution companies failed to reimburse customers as required.
As of December 31, 2025, unpaid reimbursements had accumulated to ₦20.33bn, prompting the regulator to introduce stricter enforcement measures to accelerate payments and restore customer confidence in Nigeria’s power sector.
How the Meter Refund Will Be Paid
The new directive requires DisCos to automate the reimbursement process so customers receive credits directly on their electricity accounts.
Once a prepaid meter purchased through the MAP scheme is activated, the total meter cost will be recorded as a credit on the customer’s account and repaid gradually through monthly energy credits over an approved amortisation period.
For prepaid electricity users, the system will automatically generate reimbursement tokens each month reflecting the value of the credit.
These tokens will be issued no later than the fourth day of every month.
Customers on postpaid billing will instead see the reimbursement appear as a separate credit line on their electricity bill, which will be deducted from the total monthly charges.
NERC Orders Faster Refund for Outstanding Payments
To clear the ₦20.33bn backlog owed to customers, NERC instructed electricity distribution companies to accelerate the refund process over the next 12 months.
Prepaid customers will receive two reimbursement tokens monthly, while postpaid customers will see two credit entries on their bills during the repayment period.
The commission also warned DisCos that meter reimbursement credits must not be used to offset customers’ existing electricity debts, emphasizing that both accounts must be treated separately.
