- Persistent international payment shortfalls expose GenCos to foreign settlement and currency risks.
- Chronic special-customer defaults continue to undermine market discipline and revenue certainty.
Nigeria’s electricity market remittance performance remained uneven in the third quarter of 2025, according to the Nigerian Electricity Regulatory Commission (NERC). Notably, the NERC Q3 2025 report shows that electricity generation companies received $7.12 million and N3.19 billion from bilateral customers.
However, payment gaps persisted, especially among international bilateral customers, despite steady domestic performance. Therefore, the figures again raise concerns about liquidity, sustainability, and confidence across the electricity value chain.
According to NERC, GenCos issued cumulative invoices of $18.69 million to international bilateral customers during the quarter. However, those customers remitted only $7.12 million, representing a weak 38.09% performance. By contrast, domestic bilateral customers paid N3.19 billion out of a total invoiced amount of N3.64 billion.
Consequently, domestic customers achieved a significantly higher remittance rate of 87.61 per cent.
This contrast again highlights the uneven performance of Nigeria’s electricity market remittance across customer categories.
Furthermore, payment records show that Mainstream–NIGELEC accounted for the majority of international inflows, with $5.7 million. Meanwhile, Transcorp–SBEE of Ughelli remitted $1.42 million during the same period. Although these payments reduced outstanding balances, overall performance still fell below acceptable market expectations.
Beyond current obligations, some bilateral customers also cleared outstanding invoices from previous quarters. Specifically, the Market Operator received $7.84 million from international customers as arrears payments. Similarly, domestic bilateral customers paid N1.299 billion toward earlier outstanding invoices.
As a result, these arrears payments offered modest relief to GenCos facing cash flow pressures.
However, the report also highlighted a persistent problem involving Ajaokuta Steel Company Limited and its host community. The customer failed to make any payment for Q3 2025 invoices. Consequently, it owed N1.03 billion to the Nigerian Bulk Electricity Trading Plc (NBET) and N0.10 billion to the Market Operator. NERC therefore reiterated its call for federal government intervention to resolve the long-running default.
This situation is significant because remittance performance has a direct impact on power generation capacity and system stability. When collections weaken, GenCos struggle to maintain operations and service obligations. Additionally, liquidity stress is spreading across the transmission and distribution segments. Therefore, weak remittances threaten investor confidence and delay sector reforms.
Bilateral customers purchase electricity directly from GenCos outside NBET’s central pool. Nevertheless, poor remittance has remained a recurring challenge in the Nigerian Electricity Supply Industry. In response, the Federal Government launched the Presidential Power Sector Debt Reduction Programme in 2025.
As part of this effort, NBET Finance Company Plc issued the N590 billion Series 1 Power Sector Bond.
Therefore, authorities hope these measures will gradually stabilise Nigeria’s electricity market remittance performance and restore confidence.