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, according to the latest report released by the Nigerian Electricity Regulatory Commission (NERC). The figures highlight a slight weakening in sector performance compared to the previous quarter.
The report showed that DisCos were billed N85.53 billion, out of which they paid N77.99 billion into the market. This represents a drop from Q3 2025, when they remitted N73.03 billion out of N76.77 billion, achieving a stronger performance rate of 95.13%. The decline has raised fresh concerns about liquidity pressures in Nigeria’s electricity value chain.
A closer breakdown of performance revealed that while several DisCos met their full remittance obligations, others lagged behind. Ibadan DisCo recorded 94.75%, Kano DisCo 79.28%, Jos DisCo 50.07%, and Kaduna DisCo 43.72%, with Jos DisCo recording the sharpest decline in performance during the period.
Despite the dip, NERC noted that most distribution companies still met 100% of their obligations, suggesting uneven performance across operators rather than a sector-wide failure. However, the regulator warned that sustained shortfalls from weaker DisCos could undermine market stability and investor confidence in the long run.
The development comes as Nigeria’s power sector continues to navigate structural reforms under the Electricity Act 2023, which decentralises electricity generation and distribution, allowing states and private players greater participation. However, despite these reforms, issues around cost recovery, subsidy pressures, and financial sustainability remain unresolved.
In addition, DisCos are also under pressure from regulatory directives requiring N20.33 billion in refunds to customers under the Meter Asset Provider (MAP) scheme, adding further strain to their cash flow. With subsidy reforms expected to shift cost burdens to subnational governments from 2026, stakeholders say the sector may face even tighter financial conditions in the coming years.
source: nairametrics