Nigeria's DISCOs ordered to refund N55.42bn over failed mass metering scheme

A damning investigation exposes financial mismanagement in Nigeria's power sector. Will stricter oversight finally fix the broken system?

, and Administrator

2026 May 1 . 2:11 PM

2 min read

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Nigeria's DISCOs ordered to refund N55.42bn over failed mass metering scheme

The House of Representatives has directed 11 electricity distribution companies (DISCOs) to refund N55.42 billion received under the National Mass Metering Programme (NMMP), citing concerns over the scheme's performance.

The directive followed the adoption of a committee report presented on Thursday, which mandated the affected firms to repay the funds to the Central Bank of Nigeria within seven months, according to the News Agency of Nigeria.

The lawmakers' decision demonstrates growing scrutiny of the NMMP, a key intervention introduced to address metering gaps and improve efficiency in Nigeria's power sector.

What the House of Reps is saying

The committee's findings revealed that a total of N55.42 billion was disbursed to 11 DISCOs under the NMMP, out of N59.28 billion earmarked for the programme.

The funds were provided as loans at a 9% interest rate, with 6% allocated to financiers and 3% to the CBN.
About N3.85 billion from the approved sum remains unaccounted for, according to the report.
Beneficiaries include Abuja, Eko, Enugu, Ibadan, Ikeja, Jos, Kano, and Yola distribution companies.

The House also raised concerns over payments to Meristem Wealth Management, which reportedly received N450 million and is entitled to 0.5 percent of DISCO collections annually until 2030.

Get up to speed

The NMMP was introduced in 2020 as a major reform initiative aimed at improving transparency and efficiency in Nigeria's electricity market.

The programme sought to close Nigeria's metering gap and eliminate estimated billing practices.
It was also designed to promote local meter manufacturing and reduce revenue losses across the power value chain.
The investigation involved multiple stakeholders, including the Nigerian Electricity Regulatory Commission and other sector players.
However, lawmakers concluded that the programme has not delivered its expected outcomes despite significant funding.

The committee also questioned the structure and role of service providers involved in the scheme, particularly the long-term financial arrangements tied to collections.

What you should know

In May 2025, the House of Representatives launched an investigation into the disbursement and utilisation of the N200 billion CBN loan allocated for the NMMP to DISCOs.

The NMMP was designed to provide free electricity meters to Nigerian consumers through the Licensed Electricity Distribution Companies (DISCOs).

The programme was a joint initiative of the CBN, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders in the Nigerian Electricity Supply Industry (NESI).

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

In June 2024, FG announced the approval of N21 billion for the eleven electricity Distribution Companies (DisCos) to provide meters for end-use customers at zero cost.