Eko, Kano Lead in Power Sector Remittance as Kaduna Lags at 40%

Eko and Kano Electricity Distribution Companies (DisCos) have emerged as top performers in Nigeria’s power sector after recording full remittance to the Nigerian Bulk Electricity Trading (NBET) company and the Market Operator (MO) for the first quarter of 2025.

The achievement, disclosed in the Nigerian Electricity Regulatory Commission’s (NERC) latest quarterly report, highlights improving financial discipline and operational efficiency among several distribution companies that have historically struggled with remittance shortfalls.

According to NERC, Benin, Eko, Ibadan, Ikeja, Kano, Port Harcourt, and Yola DisCos each achieved 100 percent remittance performance during the three-month period, fully meeting their obligations under the DisCos’ Remittance Obligation (DRO) adjusted invoice.

In contrast, Kaduna DisCo posted the lowest remittance rate at 40.28 percent, underscoring persistent challenges in the sector’s liquidity framework.

Kano DisCo, which serves consumers across Kano, Katsina, and Jigawa states, attributed its improved performance to strategic engagement with industrial customers, aggressive technical upgrades, and targeted tariff incentives.

The company remitted ₦19.56 billion out of an invoiced ₦19.40 billion to NBET and MO, indicating a surplus of ₦0.16 billion. Under the Service Level Agreement with the Transmission Company of Nigeria (TCN), the Transmission Service Provider will refund ₦0.15 billion to Kano DisCo for service shortfalls in January 2025.

Operational improvements at Kano DisCo have also helped restore confidence among large-scale industrial consumers. Upgrades on key feeders like the 33kV Coca-Cola and Mamuda lines have reportedly delivered up to 23 hours of daily supply, reducing the reliance on self-generation.

The company introduced discounts of 20 percent for industrial users and 12.5 percent for members of the Manufacturers Association of Nigeria, a move that has already attracted 15 previously disconnected industries back to the grid.

Eko DisCo, which distributes power across Lagos Island and parts of Lagos mainland, similarly achieved full remittance, strengthening its record as one of the sector’s most consistent operators. Benin, Ibadan, Ikeja, Port Harcourt, and Yola DisCos also met their full remittance obligations, according to the report.

Enugu and Abuja DisCos followed closely with remittance rates of 99.38 percent and 98.65 percent, respectively, reflecting overall improved compliance.

However, Jos DisCo trailed with 70.53 percent, while Kaduna DisCo’s remittance shortfall remained a concern for stakeholders monitoring the sector’s financial stability.

Persistent under-remittance has long undermined liquidity in Nigeria’s power value chain, leaving generation companies underfunded and discouraging investments in network upgrades. NERC’s latest figures, however, suggest a gradual shift towards better accountability and operational discipline among some operators.

Sector analysts say sustaining this positive trend will require DisCos to maintain aggressive loss reduction programmes, improve billing transparency, and build customer trust through reliable supply and fair tariff structures.

As the market continues to evolve under the Multi-Year Tariff Order (MYTO) framework and service-reflective tariffs, stakeholders expect stronger financial performance to bolster grid stability and attract much-needed private capital into Nigeria’s struggling power sector.