Kano, Eko Discos lead with 100% market remittance

Kano and Eko Electricity Distribution Companies (DisCos) have emerged as one of the top-performing firms in the Nigerian power sector, recording a 100 percent remittance rate to the Nigerian Bulk Electricity Trading (NBET) company and Market Operator (MO) for the first quarter of 2025.

The Nigerian Electricity Regulatory Commission (NERC) disclosed this in its latest quarterly report, highlighting a significant improvement in compliance among some distribution companies.

The achievement marks a positive development in the sector, where remittance shortfalls have long plagued liquidity and sustainability.

“Disaggregated remittance performance of the DisCos to NBET in 2025/Q1 shows that Benin, Eko, Ibadan, Ikeja, Kano, Port Harcourt and Yola DisCos achieved 100 percent remittance performance to NBET while Abuja and Enugu achieved over 90 percent remittance performance,” NERC stated.

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Kano DisCo, which serves Kano, Katsina, and Jigawa states, attributed its success to aggressive industrial customer engagement, reduced technical losses, and targeted tariff incentives that drew manufacturers back to the grid.

The DisCo made a remittance of N19.56 billion out of the N19.40 billion billed through the DisCo’s Remittance Obligation (DRO) adjusted invoice for NBET and MO, indicating an excess of N0.16 billion.

According to NERC, DRO represents the total generation companies’ invoice that is billed to the DisCos by NBET based on what the allowed DisCo tariffs can cover.

“Based on the provisions of the Service Level Agreement (SLA) between the Transmission Company of Nigeria (TCN) and DisCos, the Transmission Service Provider has to pay a total of N0.15 billion to Kano DisCo due to service shortfalls in January 2025,” NERC stated.

Earlier, Kano DisCo reported some technical upgrades, which boosted reliability, especially on Band A feeders like the 33kV Coca-Cola and Mamuda lines, which, according to reports, now deliver over 23 hours of electricity daily.

The DisCo also introduced steep discounts, 20 percent for industrial users and 12.5 percent for members of the Manufacturers Association of Nigeria, to make grid power more attractive than diesel generators.

“This has already led to 15 previously disconnected industrial customers reconnecting to the grid,” Kano DisCo stated.

According to the report, seven DisCos fully met their financial obligations to NBET, remitting the entire amount invoiced for energy received during the review period. This performance is in contrast to the remaining four DisCos, some of which remitted as low as 40 percent.

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Benin, Ibadan, Ikeja, Port Harcourt, and Yola DisCos recorded 100 percent remittance during the period, signalling a breakthrough in financial discipline and accountability within the power industry, where under-remittance has long hindered sector sustainability.

Enugu DisCo Electric followed closely behind with a remittance rate of 99.38 percent, while Abuja and Jos DisCos recorded 98.65 percent and 70.53 percent, respectively. However, Kaduna DisCo posted 40.28 percent, the lowest remittance rate, further reinforcing concerns over their operational efficiency.