Nigeria’s electricity distribution companies (DisCos) remitted a total of N77.99 billion in the fourth quarter of 2025, representing 91.19% of their financial obligations to the market.
This is according to the latest quarterly report released by the Nigerian Electricity Regulatory Commission (NERC).
The performance reflects a slight decline compared to the third quarter of 2025, raising concerns about liquidity and operational efficiency within Nigeria’s power sector.
What the report is saying
The NERC report shows that DisCos recorded a marginal drop in remittance performance in Q4 2025 compared to the previous quarter.
While most operators met their obligations, a few companies posted significant shortfalls.
- DisCos paid N77.99 billion out of a total invoice of N85.53 billion in Q4 2025, translating to a 91.19% remittance rate.
- This represents a decline from Q3 2025, when N73.03 billion was remitted out of N76.77 billion, with a higher performance rate of 95.13 per cent.
- Four DisCos fell below full remittance: Ibadan DisCo (94.75%), Kano DisCo (79.28%), Jos DisCo (50.07%), and Kaduna DisCo (43.72%).
- Jos DisCo recorded the sharpest decline, dropping by 21.32 percentage points, while Kano, Ibadan, and Kaduna also posted declines of 5.25, 3.91 and other margins respectively.
Despite the decline, NERC noted that the majority of DisCos met 100 per cent of their remittance obligations during the period.
Get up to speed
President Bola Ahmed Tinubu, in June 2023, assented to the Electricity Act 2023, a landmark legislation originally passed by the National Assembly in July 2022.
- The new Act replaces the Electric Power Sector Reform Act 2005 and introduces a comprehensive framework to guide the post-privatisation phase of the Nigerian Electricity Supply Industry (NESI). It is also designed to attract increased private sector investment into the power sector.
- A major feature of the law is the removal of electricity from the Exclusive Legislative List, effectively decentralising the sector.
- This reform allows state governments, private companies, and individuals to generate, transmit, and distribute electricity independently, thereby breaking the long-standing monopoly at the national level.
- The Act is expected to drive competition, improve service delivery, and expand access to electricity across the country by enabling subnational and private participation in power infrastructure development.
However, despite these structural reforms, Nigeria’s electricity sector continues to grapple with deep-rooted financial challenges, particularly around pricing and cost recovery.
The Market Operator (MO) plays a central role in the electricity market by issuing invoices to DisCos for energy transmission and administrative services within the NESI.
What you should know
Nairametrics earlier reported that DisCos are facing renewed financial pressure following a directive by the NERC requiring them to refund N20.33 billion to customers who purchased prepaid meters under the Meter Asset Provider (MAP) scheme.
- NERC previously directed that all refunds under the amended order must be completed within 12 months, with reimbursements applied directly to customer electricity bills.
- In February, the Federal Government announced plans to share the electricity subsidy costs with other tiers of government, like the state and local governments, from 2026, thereby ending the burden of carrying the subsidy in the power sector.
FG said the president wants electricity subsidy costs to be explicit, practical and transparent, warning that no level of government should carry hidden or unpaid obligations.
