The Nigerian Electricity Regulatory Commission (NERC) has issued new guidelines mandating a digitized and transparent framework for electricity revenue collection. Effective immediately, the Guidelines on Registration and Engagement of Third-Party Collection Service Providers aim to improve accountability, especially for distribution companies in states without established electricity markets. This move supports the Federal Government’s cashless economy initiative and strengthens control over electricity revenue.
Under the new framework, DisCos can only use licensed third-party agents with valid CBN permits, verified banking integration, and tax compliance for bill collections. The guidelines aim to ensure transparency, standardize agent engagement, and reduce revenue losses. Commission rates are capped—for instance, USSD payments under N5,000 have a maximum N20 fee, rural agents can charge up to 3.25% per transaction (capped at N2,000), and large industrial customers pay no commission. This policy builds on a 2019 order banning cash payments for major electricity users.
The new guidelines mandate digital payments via USSD, POS, kiosks, mobile wallets, and internet banking. DisCos must submit existing third-party collection contracts for approval within 90 days or face sanctions. Only licensed agents with CBN permits can be engaged. Contracts must include clear performance metrics and specify transaction accounts. No commissions are allowed on payments from maximum demand (MD) customers. Approved commission rates remain until updated by NERC.
