GenCos’ customers set the tone for Nigeria’s power market in Q3 2025, some paid promptly, others delayed, and a few paid nothing.
Consequently, electricity generation companies collected $7.12 million and ₦3.19 billion from bilateral customers, according to the Nigerian Electricity Regulatory Commission (NERC).
Overall, the figures underline a familiar split: domestic buyers largely met obligations, while international customers fell behind.
Domestic Payments Stay Strong
First, domestic bilateral customers paid ₦3.19 billion of the ₦3.64 billion billed.
As a result, they achieved an 87.61% remittance rate, sustaining local cash flows for GenCos.
International Customers Lag
By contrast, international bilateral customers paid just $7.12 million from $18.69 million invoiced.
Therefore, their remittance rate stood at 38.09%.
During the quarter, only two customers paid.
Transcorp–SBEE (Ughelli) remitted $1.42 million, while Mainstream–NIGELEC paid $5.7 million.
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Defaults Strain Liquidity
Meanwhile, some customers cleared old debts.
NERC reported that the Market Operator received $7.84 million from international customers and ₦1.30 billion from domestic customers for earlier invoices.
However, Ajaokuta Steel Company Limited and its host community paid nothing in Q3 2025.
Consequently, they owe ₦1.03 billion to the Nigerian Bulk Electricity Trading (NBET) Plc and ₦100 million to the Market Operator.
NERC described the pattern as longstanding and escalated the issue to federal authorities.
Ultimately, weak remittance continues to strain market liquidity, limit generation, and pressure GenCos’ finances.
Moreover, the payment gap exposes foreign settlement risks and deeper structural challenges.
Bilateral customers buy power directly from GenCos, outside NBET’s central pool.
Over time, persistent shortfalls in this segment have worsened sector-wide liquidity pressures.
In response, the Federal Government took action in 2025.
It issued the first bond under the Presidential Power Sector Debt Reduction Programme.
The ₦590 billion Series 1 Power Sector Bond, issued through NBET Finance Company Plc, aims to clear legacy arrears, although uneven payment discipline persists.
