By Ayo Kehinde
Nigeria’s electricity distribution companies (DisCos) remitted ₦77.99 billion in the fourth quarter of 2025, achieving 91.19 percent of their total market obligations, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).
The figure marks a decline from the third quarter, when DisCos posted a stronger remittance performance of 95.13 percent, paying ₦73.03 billion out of ₦76.77 billion billed. In Q4, total invoices rose to ₦85.53 billion, indicating growing financial pressure across the sector.
NERC’s report highlights that while most operators met their full obligations, a few DisCos recorded notable shortfalls. Ibadan DisCo achieved 94.75 percent, Kano DisCo 79.28 percent, Jos DisCo 50.07 percent, and Kaduna DisCo 43.72 percent. Jos DisCo saw the steepest drop, falling by over 21 percentage points compared to the previous quarter.
Despite the dip, the regulator noted that the majority of DisCos maintained 100% remittance compliance, reflecting pockets of operational stability.
The performance decline comes amid ongoing reforms in Nigeria’s electricity sector following the enactment of the Electricity Act 2023. The law decentralises power generation and distribution, allowing states and private investors greater participation in the market.
While the reform is expected to boost competition and improve service delivery, persistent challenges, particularly around cost recovery, pricing, and liquidity, continue to weigh on the sector.
