Nigeria’s electricity distribution companies (DisCos) remitted ₦77.99 billion in the fourth quarter of 2025, achieving 91.19 per cent of their total payment obligations, according to the latest report by the Nigerian Electricity Regulatory Commission.
The figure marks a decline from the previous quarter, signalling renewed concerns over liquidity and efficiency in the power sector.
Data from the regulator shows that DisCos paid ₦77.99 billion out of a total invoice of ₦85.53 billion in Q4 2025. This represents a drop from Q3 2025, when ₦73.03 billion was remitted out of ₦76.77 billion, translating to a stronger performance rate of 95.13 per cent.
While most operators met their obligations in full, a few DisCos recorded notable shortfalls. Ibadan DisCo posted a remittance rate of 94.75 per cent, Kano DisCo 79.28 per cent, Jos DisCo 50.07 per cent, and Kaduna DisCo 43.72 per cent.
Jos DisCo recorded the steepest decline, with a drop of 21.32 percentage points, while Kano, Ibadan, and Kaduna also saw varying degrees of reduced performance.
Despite the dip, NERC noted that the majority of DisCos achieved 100 per cent remittance during the period.
The development comes amid ongoing reforms in the electricity sector following the enactment of the Electricity Act 2023 by President Bola Ahmed Tinubu. The law decentralises the power sector, allowing states and private players to participate more actively in electricity generation, transmission, and distribution.
However, financial sustainability remains a major challenge. The sector continues to grapple with issues around cost recovery, tariff structures, and subsidy burdens.
The Market Operator, which invoices DisCos for energy and transmission services within the Nigerian Electricity Supply Industry, remains central to maintaining liquidity across the value chain.
Recent regulatory actions have added further pressure. DisCos are currently required to refund ₦20.33 billion to customers under the Meter Asset Provider (MAP) scheme, with repayments to be completed within 12 months.
Looking ahead, the Federal Government has also signalled plans to restructure electricity subsidies from 2026, with costs expected to be shared across federal, state, and local governments to improve transparency and reduce fiscal strain.
The latest figures highlight a sector still in transition, where structural reforms are underway, but financial discipline and operational efficiency remain critical to long-term stability.
