In a bid to enhance transparency in the Nigerian electricity sector, the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has directed all electricity distribution companies (DisCos) to publish details of refunds made to customers under the Meter Asset Providers (MAP) scheme.
The announcement, made via NERC’s official social media handles on Monday, aims to address longstanding concerns over inconsistencies in the refund process.
The Push for Transparency
The MAP framework, introduced to bridge Nigeria’s vast metering gap, allows third-party investors to provide and maintain meters for end-users.
Customers who opt for upfront payments under the scheme are entitled to refunds through energy credits, as mandated by NERC regulations.
However, consumer advocacy groups have persistently raised concerns that DisCos have not been diligent in reimbursing customers as stipulated.
To ensure accountability and encourage greater participation in the MAP scheme, NERC has now instructed DisCos to publicly disclose their refund records on their websites.
The regulator emphasized that making these details accessible would demonstrate commitment to the initiative and reassure customers that their investments are secure.
“NERC has directed DisCos to publish details of MAP refunds on their websites for transparency. This will demonstrate commitment and consistency to the scheme and encourage customers,” the commission stated.
Challenges of Enforcement
While the directive represents a step forward, questions remain about its implementation. Transparency measures alone may not be sufficient if there are no strong enforcement mechanisms to hold DisCos accountable.
Consumer advocacy groups and energy analysts have pointed out that past directives from NERC have not always been strictly enforced, leading to continued dissatisfaction among electricity users.
Without stringent monitoring and penalties for non-compliance, DisCos may continue to flout refund requirements. This raises the need for a robust enforcement strategy, including independent audits, penalties for defaulting DisCos, and a clear dispute resolution mechanism for customers who fail to receive refunds as expected.
Bridging the Metering Gap
With over seven million unmetered electricity consumers in Nigeria, the government is also pushing to accelerate metering efforts.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, recently reaffirmed the administration’s commitment to metering all registered customers. According to her, metering is essential not only for revenue collection but also for reducing financial losses in the power sector.
“The government is intervening in the short term by making sure that the registered customers within the DisCos have meters,” Verheijen stated. “No matter what your tariff is, you need to make sure that you can collect and reduce your collection losses. That’s one of the interventions.
The Presidential Metering Initiative is consolidating all metering programs funded by different entities.”
NESI Stakeholders Meeting and the Way Forward
On Monday, NERC convened the first Nigerian Electricity Supply Industry (NESI) Stakeholders meeting of 2025 at its headquarters.
Key issues discussed included tariff methodology, market liquidity, and the transition to a multi-tier electricity market that will involve state electricity regulatory commissions.
The quarterly meeting serves as a platform for industry players to deliberate on pressing issues and seek solutions to challenges in the power sector. One of the focal points of this session was ensuring that DisCos have the financial strength to invest in electricity reliability and access.
The transition to a multi-tier market is expected to create a more competitive and efficient electricity industry in Nigeria.
Call for Stronger Regulatory Action
While the directive for DisCos to publish refunds is a welcome development, industry experts stress that enforcement is key to ensuring compliance. For the initiative to succeed, NERC must introduce:
- Regular Audits: Independent audits should be conducted periodically to verify that DisCos are making refunds as mandated.
- Sanctions for Non-Compliance: DisCos that fail to comply should face financial penalties and possible regulatory actions.
- Customer Complaints Portal: A dedicated online portal where customers can report issues related to meter refunds would enhance oversight and ensure swift resolutions.
- Public Accountability Reports: NERC should publish periodic reports detailing compliance levels among DisCos, including penalties imposed for violations.
As Nigeria seeks to resolve its electricity sector challenges, ensuring transparency in the MAP scheme is vital. However, without proper enforcement mechanisms, the new directive may not yield the desired results.
Consumers, industry stakeholders, and regulators must work together to ensure that DisCos are held accountable, refunds are disbursed as required, and the metering gap is effectively bridged.
With millions of Nigerians relying on improved electricity services, the government’s ability to enforce its policies will determine whether these initiatives translate into real benefits for end-users.
