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Nigeria has crossed a key threshold in its electricity market, with more than half of registered power consumers now on prepaid meters, official data show.
Figures released by the Nigerian Electricity Regulatory Commission (NERC) indicate that the national metering rate rose to 57.27 per cent by the end of December 2025, indicating a sustained improvement in meter deployment after years of slow progress.
It was revealed that the power sector has long been weighed down by estimated billing, a system under which customers without meters are charged based on assessed rather than actual consumption.
The practice has fuelled complaints of overbilling and contributed to chronic liquidity problems across electricity distribution companies.
In response, the regulator introduced the Meter Asset Provider scheme and the National Mass Metering Programme, aimed at accelerating the shift to a prepaid, pay-as-you-go billing model.
NERC’s data show that of Nigeria’s 12.16 million active electricity customers, 6.97 million are now metered.
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According to the data, the Ikeja DisCo currently leads the sector, with an 86.40 per cent metering rate, while Kaduna DisCo trails at 34.42 per cent.
Distribution companies installed 109,556 new meters in December alone, a 24 per cent increase on the previous month, according to the regulator.
Industry stakeholders say the faster pace of installation should help curb commercial losses and free up capital for long-overdue upgrades to the national grid.
Prepaid metering is widely seen as central to restoring confidence in the sector, allowing households to track consumption more closely while ensuring distributors are paid accurately for power supplied.
However, nearly 5.1 million customers, about 43 per cent of the market, remain without meters and those households continue to face estimated bills that consumer groups say often exceed the value of electricity delivered.
Access has also been complicated by a recent 40 per cent rise in the price of prepaid meters, raising questions about affordability for low-income households.
NERC said it expects national metering coverage to exceed 65 per cent by the end of 2026, adding that the Federal Government of Nigeria is reviewing financing options to cushion the impact of recent price adjustments and accelerate universal access.