Abuja, Ikeja Top NBET Payment Obligations as DisCos Remit ₦312.5bn in Q1 2026
By Eyo Nsima
Nigeria’s electricity distribution companies (DisCos) collectively remitted ₦312.48 billion to the Nigeria Bulk Electricity Trading Plc (NBET) in the first quarter of 2026, achieving a 94.29 per cent remittance performance under the Distribution Companies’ Remittance Obligation (DRO) framework.
The Nigerian Electricity Regulatory Commission (NERC), in its First Quarter 2026 report, disclosed that the remittance performance improved slightly from 93.04 per cent recorded in the fourth quarter of 2025, although the DisCos still left an outstanding balance of ₦18.92 billion.
The report also showed that the Federal Government continued to shoulder a significant portion of electricity generation costs, providing ₦358.32 billion in tariff subsidies because electricity tariffs remain below cost-reflective levels.
Ranking the DisCos by NBET payment obligations
An analysis of the NERC report shows that Abuja Electricity Distribution Company had the largest payment obligation to NBET during the quarter, followed closely by Ikeja Electric and Eko Electricity Distribution Company.
Top 11 DisCos by DRO-adjusted NBET invoice
Rank Distribution Company NBET Invoice (₦ Billion)
1 Abuja DisCo 58.49
2 Ikeja Electric 57.76
3 Eko DisCo 42.37
4 Ibadan DisCo 40.54
5 Benin DisCo 29.59
6 Enugu DisCo 26.80
7 Port Harcourt DisCo 20.64
8 Jos DisCo 16.74
9 Kaduna DisCo 16.32
10 Kano DisCo 15.83
11 Yola DisCo 6.32
The figures represent the amount each distribution company was required to remit to NBET after the Federal Government deducted the tariff subsidy component under the DRO arrangement.
Abuja, Ikeja dominate electricity market
Abuja DisCo recorded the highest generation invoice of ₦113.43 billion, translating into a final remittance obligation of ₦58.49 billion after government subsidy.
Ikeja Electric followed closely with a generation invoice of ₦110.84 billion and a final obligation of ₦57.76 billion.
Eko and Ibadan DisCos also recorded substantial payment obligations of ₦42.37 billion and ₦40.54 billion, respectively, reflecting their large customer bases and electricity consumption levels.
Benin and Enugu DisCos posted obligations of ₦29.59 billion and ₦26.80 billion, while Port Harcourt DisCo was billed ₦20.64 billion.
Among the northern distribution companies, Jos, Kaduna and Kano recorded obligations ranging between ₦15.83 billion and ₦16.74 billion, while Yola DisCo had the smallest obligation at ₦6.32 billion.
Government subsidy exceeds DisCos’ obligations
NERC noted that although generating companies submitted invoices totaling ₦689.72 billion for electricity supplied during the quarter, the DisCos were billed only ₦331.40 billion.
The remaining ₦358.32 billion—equivalent to 51.95 per cent of the total generation invoice—was borne by the Federal Government as tariff subsidy.
The Commission explained that the subsidy became necessary because electricity tariffs approved for consumers remain below the actual cost of producing and supplying electricity.
Despite the huge subsidy, the government recorded some savings compared to the previous quarter, with subsidy payments declining by ₦60.46 billion, or 14.44 per cent, from ₦418.79 billion in the fourth quarter of 2025.
According to NERC, the reduction was driven largely by an 8.56 per cent decline in electricity energy offtake by the distribution companies.
DisCos still leave ₦18.9bn unpaid
While the overall remittance performance improved, the report showed that the DisCos did not fully meet their obligations.
Out of the ₦331.40 billion billed by NBET, only ₦312.48 billion was paid during the quarter, leaving an outstanding balance of approximately ₦18.92 billion.
Industry analysts say the improved remittance performance demonstrates gradual strengthening of payment discipline under the DRO regime, introduced in January 2024 to replace the Minimum Remittance Obligation (MRO) framework.
