Mkpoikana Udoma
Port Harcourt — In a rare positive development, Nigeria’s electricity distribution companies, DisCos, raised their remittance rate to the Nigerian electricity market to 95.86% in Q1 2025, their highest collective performance in recent years.
According to the 97-page Q1 2025 report released by the Nigerian Electricity Regulatory Commission, NERC, DisCos were invoiced N208.49 billion by the Market Operator for energy received, and they remitted N199.83 billion.
This performance reflects an increased commitment to sector stability despite ongoing commercial challenges.
NERC attributed the improved remittance to tighter regulatory oversight, tariff adjustments under the Service-Based Tariff regime, and enforcement of the Partial Activation of Contracts framework in the sector.
“The market discipline measures introduced in 2024 are beginning to yield results. We commend the DisCos for stepping up compliance, but expect full remittance in subsequent quarters,” NERC said.
Ikeja Electric, Eko DisCo, and Abuja DisCo led the charge with over 98% remittance each, while Kaduna and Yola DisCos posted the lowest, falling below the 90% threshold.
According to NERC, DisCos that underperformed now risk regulatory penalties.
This improvement in market settlement boosts confidence among GenCos and gas suppliers, many of whom rely on timely remittances to keep their operations afloat. The remittance rate also helps the Nigerian Bulk Electricity Trading, NBET, Company meet its obligations to power producers.
NERC says it will continue to monitor DisCos closely and ensure that improved remittance translates into better service delivery, improved supply hours, and faster metering for customers.
