DisCos Remit ₦77.99 Billion in Q4 2025 as Performance Dips to 91.19%

Nigeria’s power sector is facing a fresh liquidity hurdle as electricity distribution companies (DisCos) saw their financial remittance performance slide in the final quarter of 2025. According to the latest quarterly report from the Nigerian Electricity Regulatory Commission (NERC), DisCos remitted ₦77.99 billion out of a total invoice of ₦85.53 billion.

While the majority of operators remained fully compliant, the overall market remittance rate dropped to 91.19%, down from a more robust 95.13% in the third quarter. This dip highlights ongoing operational inefficiencies and collection challenges in specific regions across the country.

The Remittance Breakdown: Highs and Lows

The ₦77.99 billion paid to the Market Operator (MO) covers essential services such as energy transmission and administrative costs within the Nigerian Electricity Supply Industry (NESI). However, the decline in performance was primarily driven by sharp drops in the northern and western clusters.

• The Sharpest Declines: Jos DisCo recorded the most significant slump, with its remittance rate crashing by 21.32 percentage points to just 50.07%.

• Persistent Shortfalls: Kaduna DisCo (43.72%) and Kano DisCo (79.28%) also struggled, continuing a trend of weak financial recovery in those zones.

• The 100% Club: Despite the overall dip, NERC noted that the majority of DisCos—including those in major industrial hubs like Lagos and Abuja—met 100% of their obligations, effectively subsidizing the market’s stability.

The MAP Refund Pressure

The dip in remittance comes at a time when DisCos are under heightened financial scrutiny. NERC recently mandated that DisCos refund ₦20.33 billion to customers who personally funded their prepaid meters under the Meter Asset Provider (MAP) scheme.

These refunds, which must be completed within 12 months, are being applied directly to customer bills. This “revenue-at-source” deduction is placing immediate pressure on the cash flow of distribution companies, potentially contributing to the lower remittance figures seen at the end of the year.

Decentralization and the 2026 Subsidy Reset

The financial health of DisCos is becoming a focal point as Nigeria transitions toward a more decentralized power market under the Electricity Act 2023. This reform has already empowered several states to regulate their own internal markets, shifting the burden of accountability closer to the end-user.

Furthermore, the Federal Government has confirmed a major fiscal shift for 2026:

• Subsidy Sharing: The current federal electricity subsidy will be shared across Federal, State, and Local governments.

• Transparency: The goal is to make power costs “explicit and practical,” ensuring that no single tier of government is left holding hidden or unpaid liabilities.

Looking Ahead

For the power sector to remain “bankable,” the consistent remittance of invoices to the Market Operator is non-negotiable. As the country approaches 2026, the focus will be on whether struggling DisCos in Jos, Kaduna, and Kano can restructure their operations to match the 100% remittance performance of their peers.

Failure to close these liquidity gaps could lead to stricter regulatory interventions, including the potential for NERC to escrow the accounts of non-compliant DisCos to ensure the stability of the entire value chain.