Nigeria’s electricity distribution companies have remitted a total of N77.99 billion to the market in the fourth quarter of 2025, representing 91.19 percent of their financial obligations.
This is according to the latest quarterly report released by the Nigerian Electricity Regulatory Commission (NERC).
The report indicates a slight decline in performance compared to the third quarter of 2025, raising concerns about liquidity challenges and operational efficiency within Nigeria’s power sector.
According to NERC, distribution companies paid N77.99 billion out of a total invoice of N85.53 billion issued during the quarter.
This translates to a remittance rate of 91.19 percent, a drop from the 95.13 percent recorded in the previous quarter when N73.03 billion was remitted out of an invoice of N76.77 billion.
The report showed that while most electricity distributors met their financial obligations, four companies recorded notable shortfalls during the period.
These include Ibadan Electricity Distribution Company with a remittance rate of 94.75 percent, Kano Electricity Distribution Company at 79.28 percent, Jos Electricity Distribution Company at 50.07 percent and Kaduna Electricity Distribution Company at 43.72 percent.
Among the underperforming firms, Jos DisCo recorded the steepest decline, dropping by 21.32 percentage points. Kano, Ibadan and Kaduna DisCos also posted declines of 5.25 percentage points, 3.91 percentage points and other margins respectively.
Despite the drop in overall performance, NERC noted that the majority of distribution companies achieved 100 percent remittance of their market obligations during the period.
The development comes amid broader reforms in Nigeria’s power sector following the signing of the Electricity Act 2023 into law by President Bola Ahmed Tinubu in June 2023.
The law replaced the Electric Power Sector Reform Act 2005 and introduced a new framework for the post-privatisation phase of the Nigerian Electricity Supply Industry.
One of the key provisions of the Act is the removal of electricity from the Exclusive Legislative List, effectively decentralising the sector and allowing state governments, private firms and individuals to generate, transmit and distribute electricity independently.
The reform is expected to attract greater private sector investment, increase competition and improve electricity access across Nigeria.
However, despite these structural changes, the sector continues to face long-standing financial challenges, particularly around pricing structures and cost recovery.
Within the electricity market, the Market Operator plays a key role by issuing invoices to distribution companies for energy transmission and administrative services across the Nigerian Electricity Supply Industry.
Earlier reports also indicate that DisCos are under additional financial pressure after the regulator directed them to refund N20.33 billion to customers who purchased prepaid meters under the Meter Asset Provider Scheme.
Under the directive, all refunds must be completed within 12 months and will be applied directly to customers’ electricity bills.
Meanwhile, the Federal Government has announced plans to begin sharing electricity subsidy costs with state and local governments starting from 2026.
According to the government, the move is intended to make subsidy costs more transparent and ensure that no tier of government carries hidden financial obligations in sustaining the power sector.
