Nigeria: NERC to Regulate Third Party Revenue Collectors for DisCos
The Nigerian Electricity Regulatory Commission (NERC) has issued a new regulatory framework in the selection of third party revenue collectors for electricity Distribution Companies (DisCos)
NERC in a document titled, ‘Guidelines on Registration and Engagement of third-party collection service providers’ said this is to provide clear guidance to DisCos on modalities for the registration of third-party collection agents including applicable service charges; promote transparency and accountability in revenue collections from electricity sales by third-party collection service partners engaged by DisCos, standardise the use and engagement of third-party collection service partners and enhance revenue collection in the NESI.
The guideline, which was signed by the Chairman of NERC, Sanusi Garba, said it would be effective from the 27th day of May 2025.
It said all third parties shall be registered with the commission prior to being eligible to render collection services in NESI, except those whose operations are limited to a state with regulatory oversight.
While stating a payment of a non-refundable registration fee of N100,000 will be made to the commission, it said all collection service contracts/agreements with a DisCo under the regulatory purview of the commission shall require its approval prior to commencement of operation.
“In these Guidelines, cashless collection channels available to DisCos are categorised into Unstructured Supplementary Service Data (USSD), banking services, mobile payment services, agency and rural services.
It said no CSP shall be engaged by a DisCo without the applicable CBN licence/permit.
All third-party collection service agreements/contracts entered into with any DisCo under the regulatory oversight of the Commission are subject to the Commission’s approval and registration prior to the commencement of the transaction. All DisCos shall adopt more efficient and cost-effective channels for collection.
“All collection service contracts/agreements shall detail clear performance indicators for the collection provider and shall be regularly evaluated by the DisCo.
By Daily Trust.
