Nigeria’s electricity distribution companies (DisCos) remitted a total of ₦77.99 billion in the fourth quarter of 2025, with overall remittance performance declining to 91.19%, according to the Nigerian Electricity Regulatory Commission (NERC).
NERC
Why It Matters
Remittance performance reflects the financial health of Nigeria’s power sector. A decline signals
• Reduced liquidity across the electricity value chain
• Increased pressure on generation and transmission operators
•Continued reliance on government intervention and subsidies
Lower remittances weaken the entire market structure, affecting power supply stability.
Key Figures from the Report
₦77.99 billion remitted to the Market Operator (MO)₦85.53 billion total invoice issued to DisCos91.19% performance, down from 95.13% in Q3 2025
Across the broader market:Total DisCo remittance (NBET + MO): ₦437.27 billionOverall remittance performance: 92.71%, also lower quarter-on-quarter NERCBackground
The Nigerian electricity market operates through a chain involving generation companies (GenCos), the Nigerian Bulk Electricity Trading Plc (NBET), transmission operators, and DisCos.DisCos collect payments from end-users and are expected to remit funds upstream to cover:
Power generation costsTransmission and administrative servicesIn Q4 2025, DisCos billed customers ₦795.06 billion but collected ₦630.93 billion, highlighting persistent revenue gaps.
Tribune OnlineWhat Drove the DeclineThe drop in remittance performance is linked to structural inefficiencies:High Aggregate Technical, Commercial and Collection (ATC&C) lossesIncomplete billing and weak collection systemsCustomer non-payment and metering gaps
These losses continue to erode revenue before it reaches upstream market participants.
Implications Sustainability Risk: Lower remittances strain GenCos and transmission operationsSubsidy Dependence: Government intervention remains necessary to bridge funding gapsTariff Pressure: Authorities may face increasing calls for cost-reflective tariffs
The sector remains caught between affordability constraints and financial viability.Related ContextNERC data also shows that government subsidy in Q4 2025 stood at ₦418.79 billion, underscoring continued fiscal support to keep the system operational.
Nairametrics Despite this, performance metrics across billing, collection, and remittance all recorded slight declines compared to Q3 2025.InsightA 91.19% remittance rate is operationally inadequate in a system already dependent on subsidies.
The issue is not marginal decline but structural leakage energy delivered is not fully monetized.Without resolving metering gaps, enforcement inefficiencies, and pricing distortions, incremental improvements in revenue collection will remain unstable.
Source: Nairametrics
