The Nigerian Electricity Regulatory Commission (NERC) has announced that, effective immediately, only firms licensed by the Central Bank of Nigeria (CBN) will be allowed to collect electricity payments on behalf of distribution companies. The regulator has also set strict limits on the commissions that third-party agents can charge for their services.
According to NERC’s new guidelines, all electricity distribution companies (DisCos) must re-register every collection partner by December 31, 2025, or face sanctions. The policy, outlined in the Guidelines for the Engagement of Third-Party Collection Service Providers in NESI, aims to tackle unregulated fees and improve transparency in the country’s power sector.
Vice Chairman Musiliu Oseni explained that the guidelines standardize payment channels, covering USSD, banking apps, PoS agents, and rural vendors. The new framework also enforces a cashless payment system, a policy first introduced in 2019, which was intended to ensure that payments reach utility accounts directly and reduce revenue leakages.
Under the new rules, only CBN-licensed banks, payment service providers, super-agents, and similar entities can operate as collection partners. Each provider must meet strict registration requirements, including tax clearance, incorporation documents, proof of banking relationships, and a N100,000 registration fee. Contracts not re-registered by the end of the year will automatically become invalid.
The commission has also capped the commissions that agents can earn. For USSD payments, the maximum charge is N20 for transactions under N5,000 and N50 for payments above that. Other channels, such as PoS agents, mobile wallets, and kiosks, have caps ranging from 0.75% to 3.25% per transaction, with upper limits between N2,000 and N5,000 depending on the channel.
NERC emphasized that collection service providers may only earn commissions for the collection service itself, prohibiting additional deductions for marketing or IT support. Maximum demand customers are excluded from third-party collection and must pay directly into DisCos’ accounts.
Industry observers have warned that smaller agents, particularly those serving remote communities, may struggle to operate under the new fee limits. Meanwhile, distribution companies are under pressure to revalidate thousands of collection contracts before the year-end deadline.
NERC said that full implementation of these guidelines could improve liquidity for DisCos, reduce revenue losses, and strengthen the transparency of Nigeria’s electricity sector.
