The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to refund N20.33 billion to customers who purchased prepaid meters under the Meter Asset Provider (MAP) scheme.

The directive, issued in an amended order on March 1, 2026, mandates that the refunds be completed within 12 months, with reimbursements credited directly to customers’ electricity bills in equal instalments over the repayment period.

Industry experts say the directive comes at a challenging time for distribution companies, many of which are already grappling with liquidity constraints across the Nigerian Electricity Supply Industry.

A senior manager at the Abuja Electricity Distribution Company (AEDC) expressed concern over the financial impact. “These challenges have significantly constrained the cash flow available to distribution companies for infrastructure maintenance, network expansion, and metering investments,” the official said.

Power sector analyst Ayodele Oni noted that while the directive protects consumers, it could exacerbate the financial difficulties of DisCos. “Most DisCos are already financially distressed,” Oni said. “Without addressing underlying tariff gaps and revenue recovery issues, policies like this may worsen liquidity problems and hinder investment in network improvements.”

Energy economist Dr. Benjamin Emmanuel warned that the scale of the refund could strain companies’ balance sheets. “Requiring DisCos to refund such a large sum within a short period, without improving sector liquidity, may put additional pressure on already weak finances,” he said.

Similarly, power-sector consultant Adedayo Ademiluyi emphasized that the directive highlights the longstanding financial fragility of Nigeria’s electricity distribution sector. “DisCos operate in an environment where tariffs are not fully cost-reflective and revenue collection remains weak. Introducing new financial obligations without structural reforms could make compliance difficult,” he said.

The MAP scheme was introduced to tackle Nigeria’s metering gap and reduce disputes over estimated billing. Under the programme, third-party investors supply prepaid meters to consumers, who pay upfront and recover the cost through reimbursements from distribution companies.

However, implementation challenges—including funding shortfalls and operational delays—have slowed meter installations, and complaints over delayed refunds remain common. Experts say the refund directive also reflects broader structural issues in Nigeria’s electricity market, such as tariff gaps, weak revenue collection, and electricity theft.

Distribution companies continue to face mounting losses from ageing infrastructure, unpaid bills from government institutions, and high operational costs, further straining sector finances.

The NERC order requires all refunds to be completed within a year, with equal instalments credited to customers’ electricity bills. Observers note that compliance will depend heavily on each DisCo’s financial capacity and operational efficiency.

The refund obligation follows the Federal Government’s approval of N28 billion in October 2025 under the Meter Acquisition Fund (MAF) Tranche B scheme, aimed at procuring and installing prepaid meters nationwide.