In the third quarter of 2025, Nigeria’s electricity companies collected a total of $7.12 million and N3.19 billion from their customers, according to the Nigerian Electricity Regulatory Commission (NERC).
According to reports local customers paid their electricity bills on time, with a notable payment rate of 87.61%. They paid a total of N3.19 billion out of N3.64 billion in total bills. However, international customers had a harder time keeping up, paying only $7.12 million of their total bill of $18.69 million, which means they only paid about 38% of what they owed. Among these international customers, Transcorp–SBEE (Ughelli) paid $1.42 million, while Mainstream–NIGELEC paid $5.7 million.
Customers appear poised to take advantage of the opportunity to settle their past unpaid bills. International clients are expected to collectively address overdue payments of $7.84 million, while local customers are anticipated to pay off N1,299.66 million they owe from previous quarters. This trend suggests a positive shift in financial responsibility and could lead to even better cash flow.
The challenge of money transfers poses a significant hurdle in Nigeria’s electricity market. When payments are not collected effectively, it diminishes the funds available for electricity generation, placing power-producing companies and other industry participants in a difficult financial situation.
There is a clear distinction in the payment processes for local and international transactions, which underscores the risks tied to overseas payments. Furthermore, persistent payment failures indicate deeper issues that necessitate government action. Some customers obtain electricity directly from power generators, bypassing the central system overseen by the Nigerian Bulk Electricity Trading (NBET).
The issue of inadequate payment performance has been a persistent problem in Nigeria’s electricity sector, impacting financial stability across the industry. There has been extensive dialogue regarding NBET’s payment challenges, the financial difficulties faced by power generation companies, and the regulatory actions taken by the Nigerian Electricity Regulatory Commission (NERC) to enhance the situation.
In 2025, the Federal Government made a pivotal move by introducing its inaugural bond as part of the Presidential Power Sector Debt Reduction Programme, aimed at tackling the ongoing payment delays within the electricity sector.
The N590 billion Series 1 Power Sector Bond was issued by NBET Finance Company Plc, which was established specifically to handle these types of transactions for the Nigerian Bulk Electricity Trading Plc.
