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Electricity distribution companies in Nigeria are facing renewed financial pressure following a directive by the Nigerian Electricity Regulatory Commission (NERC) requiring them to refund N20.33 billion to customers who purchased prepaid meters under the Meter Asset Provider (MAP) scheme.

The directive was contained in an amended order issued by the regulator on March 1, 2026, directing electricity distribution companies (DisCos) to reimburse affected customers within 12 months.

Under the order, the refunds will be credited to customers’ electricity bills in equal instalments over the repayment period, a move aimed at strengthening consumer protection and restoring confidence in Nigeria’s electricity market.

Industry stakeholders say the directive comes at a time when electricity distribution companies are already struggling with severe liquidity challenges across the Nigerian Electricity Supply Industry.

Executives within several DisCos warn that the order could further strain their already fragile financial positions.

Similarly, power sector consultant Adedayo Ademiluyi said the directive shows the long-standing financial fragility of Nigeria’s electricity distribution segment.

Energy policy analyst Ibrahim Maryam added that the refund order should be accompanied by broader reforms aimed at improving sector liquidity and reducing operational losses.

Experts say the directive highlights the delicate balance regulators must maintain between protecting electricity consumers and ensuring the financial sustainability of power sector operators.

Nigeria introduced the Meter Asset Provider (MAP) scheme to address the country’s longstanding metering gap and reduce disputes associated with estimated billing.

Customer complaints over delayed meter refunds and slow meter installations have persisted since the programme was introduced.

These challenges have continued to generate tension between electricity consumers and distribution companies while highlighting broader structural weaknesses in the country’s power sector.

Energy analysts say the refund directive also reflects deeper structural issues within Nigeria’s electricity market, particularly around tariffs and revenue collection.

Despite several tariff reviews, electricity prices in some segments of the market are still considered insufficient to fully cover the cost of power supply.

Distribution companies continue to face significant revenue losses due to electricity theft and weak billing and collection systems.

Persistent energy losses across aging distribution infrastructure further reduce the revenue available to operators.

High operational costs have also limited the ability of many DisCos to invest in network upgrades and metering infrastructure.

Experts say these issues have combined to create a liquidity crisis across the electricity value chain, affecting generation, transmission, and distribution companies.

The Nigerian Electricity Regulatory Commission has directed that all refunds under the amended order must be completed within 12 months, with reimbursements applied directly to customer electricity bills.

Distribution companies are expected to comply fully with the reimbursement timeline set by the regulator.

In October 2025, the Federal Government approved the disbursement of N28 billion to electricity distribution companies under the Meter Acquisition Fund (MAF) Tranche B scheme for the procurement and installation of prepaid meters.