By Yahaya Umar
Nigerian Electricity Regulatory Commission ,NERC, has released new guidelines mandating a digitised, transparent, and accountable framework for electricity revenue collection.
The new regulatory directive, titled: ‘’Guidelines on Registration and Engagement of Third-Party Collection Service Providers’’, was released on May 27 and signed by the NERC chairman, Engineer Sanusi Garba.
The new regulatory directive, which takes effect immediately, is anchored on the powers conferred upon the Commission by Section 226 of the Electricity Act 2023.
The guidelines are targeted primarily at Electricity Distribution Companies ,DisCos, operating in states that have yet to establish their electricity markets.
NERC stated that the move aligns with the Federal Government’s push for a cashless economy and aims to tighten controls over electricity revenue inflows in the Nigerian Electricity Supply Industry ,NESI.
Under the new framework, DisCos are prohibited from engaging unlicensed agents for bill collections. Only third-party Collection Service Providers ,CSPs, with valid Central Bank of Nigeria ,CBN, permits, verified integration with the Nigeria Inter-Bank Settlement System ,NIBSS, and strict tax compliance will be eligible to operate. The Commission has also introduced capped commission rates across all payment channels.
For example, USSD transactions below ₦5,000 will attract a maximum commission of ₦20. Rural agents may charge up to 3.25% per transaction, subject to a cap of ₦2,000.
In a bid to protect industrial and commercial consumers, Maximum Demand ,MD, customers will continue to enjoy zero commission charges on their bill payments.
The policy is built on NERC’s earlier Order No. NERC/183/2019, which eliminated cash payments for large-scale electricity users.
The latest guidelines now seek to institutionalise digital payments across all channels, including USSD codes, Point-of-Sale ,PoS, terminals, vending kiosks, mobile wallets, and internet banking platforms.
With the new directive, all DisCos are now required to submit existing CSP contracts for regulatory compliance within 90 days, while failure to comply could attract sanctions.
NERC Chairman, Engr. Sanusi Garba said the move represents a bold step towards improving revenue assurance, enhancing consumer protection, and accelerating digital transformation in Nigeria’s power sector.
