Nigeria’s electricity distribution companies are facing renewed financial pressure after the Nigerian Electricity Regulatory Commission directed them to refund about N20.33 billion to customers who paid for prepaid meters under the Meter Asset Provider Scheme. The amended order, issued on March 1, 2026, requires distribution companies to reimburse affected consumers within 12 months through equal credits applied to their electricity bills.
Industry stakeholders warn that the directive comes at a time when electricity distribution companies are already experiencing significant liquidity constraints within the Nigerian power sector. Operators argue that weak revenue collection, tariff gaps, and operational losses have limited their financial capacity, raising concerns that the refund obligation could further strain balance sheets and reduce resources available for network maintenance and infrastructure investment.
The MAP scheme was introduced to address Nigeria’s persistent metering gap and reduce estimated billing by allowing third-party investors to supply prepaid meters. While the policy has improved meter deployment, delays in installations and reimbursement processes have generated consumer complaints. Analysts say the latest directive highlights the ongoing challenge of balancing consumer protection with the financial sustainability of electricity distribution companies.
