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.
Many government institutions and large electricity users still owe substantial unpaid electricity bills across several distribution networks,” another AEDC official said.
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.
Source: Nairametrics
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