Nigeria’s electricity distribution companies (DisCos) paid N77.99 billion into the national market in the fourth quarter of 2025, covering about 91.19% of their total financial obligations, according to the latest report released by the Nigerian Electricity Regulatory Commission (NERC).
The report shows a slight dip in performance compared to the previous quarter, raising fresh concerns about liquidity pressure and operational strain within the power sector.
Out of a total invoice of N85.53 billion issued for the period, the DisCos remitted N77.99 billion. In Q3 2025, however, performance was stronger, with N73.03 billion paid out of N76.77 billion, representing a higher remittance rate of 95.13%.
A breakdown of the figures shows mixed performance across the operators. While some DisCos met their obligations in full, others fell significantly short. Ibadan DisCo recorded a remittance rate of 94.75%, Kano DisCo stood at 79.28%, Jos DisCo dropped to 50.07%, and Kaduna DisCo posted the weakest performance at 43.72%.
Jos DisCo recorded the steepest decline within the period, slipping by over 21 percentage points. Kano and Ibadan also saw moderate drops, while Kaduna’s performance remained a major concern. Despite these shortfalls, NERC noted that most operators were still broadly compliant with remittance requirements.
The figures come at a time when Nigeria’s power sector is undergoing major reforms under the Electricity Act 2023, signed by President Bola Ahmed Tinubu. The legislation replaces the old 2005 reform law and is aimed at opening up the electricity market to greater private participation and competition.
One of its key features is the decentralisation of the sector, allowing states and private investors to generate, transmit, and distribute electricity independently—an approach policymakers say could improve efficiency and expand access.
However, analysts warn that persistent challenges around revenue collection, tariff disputes, and cost recovery continue to weigh on the sector’s stability.
Meanwhile, the Market Operator retains responsibility for billing DisCos for transmission and market administration services within the Nigerian Electricity Supply Industry, a function seen as central to maintaining financial discipline in the system.
