DisCos owing ₦89.6bn for 2025 – NERC

Nigeria’s 11 electricity distribution companies (DisCos) are owing ₦89.58 billion for the 2025 financial year despite being invoiced a combined ₦1.72 trillion for energy and administrative services.

The DisCos paid ₦1.63 trillion of the invoices issued by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator, representing an aggregate payment performance of 94.8 percent, according to the Nigerian Electricity Regulatory Commission (NERC).

The ₦89.58 billion outstanding balance highlights ongoing liquidity pressures within Nigeria’s electricity market, where the timely settlement of financial obligations is critical to sustaining operations across the power value chain.

DisCos are required to meet their market obligations using revenue generated from electricity consumers, making their payment performance a key indicator of the distribution segment’s financial health.

Although the 94.8 percent aggregate payment rate indicates that most invoices were settled, the unpaid balance still poses a significant challenge to the market.

This shortfall comes as the power sector continues to struggle with liquidity bottlenecks, while stakeholders push to improve cash flow across the generation, transmission, and distribution segments.

Robust market payment performance remains vital for power suppliers and market participants to sustain operations, meet financial commitments, and invest in infrastructure.

The payment gap also underscores the need for stronger financial discipline among DisCos as the sector strives to improve power supply and attract the capital required to upgrade aging infrastructure.

NERC continues to monitor the commercial and financial performance of the DisCos as part of broader efforts to ensure the long-term sustainability of the Nigerian Electricity Supply Industry.

With ₦89.58 billion remaining unpaid from the 2025 market invoices, these figures point to persistent strain on sector liquidity despite relatively high overall compliance.