Regulatory Efforts to Address Billing Disputes in Nigeria’s Power Sector
The Nigerian Electricity Regulatory Commission (NERC) has taken significant steps to address billing-related issues in the power sector by issuing credit adjustments to electricity customers. In 2025, a total of N155.84m was distributed as refunds, reflecting the regulator’s commitment to resolving disputes and ensuring fair treatment for consumers.
These refunds were issued in four tranches throughout the year, with amounts totaling N32.21m in the first quarter, N40.22m in the second, N32.66m in the third, and N50.75m in the fourth. This consistent approach highlights the commission’s ongoing efforts to tackle overbilling and related concerns raised by customers across the country.
The process of issuing these refunds was closely tied to complaints lodged through the NERC Customer Complaint Unit. Established under the Electricity Act 2023, this unit serves as a critical mechanism for consumer protection and holds distribution companies (DisCos) accountable for their service delivery.
Billing Disputes Remain a Major Concern
According to data from the commission, billing disputes were the primary source of customer complaints, accounting for between 29 and 37 per cent of all cases recorded during the year. In the first quarter alone, 4,169 complaints were received, but only 1,554 were resolved, resulting in a resolution rate of 37.27 per cent.
The commission emphasized its role in developing standard procedures for handling complaints and providing multiple channels for customers to lodge grievances. These include emails, letters, and phone calls through the NESI Call Centre, which then forwards complaints to the relevant DisCos for resolution.
Improvements in Complaint Resolution Rates
Despite the initial low resolution rate, subsequent quarters showed marked improvements. By the second quarter, the resolution rate had risen to 45.63 per cent, followed by 62.30 per cent in the third and 76.96 per cent in the fourth. These figures indicate a growing effectiveness in addressing customer concerns.
In the second quarter, 2,474 complaints were lodged, with 1,129 being resolved. The commission noted that this improvement was due to increased efforts to streamline the complaint resolution process. Similarly, in the third quarter, 833 complaints were reported, with 519 resolved, showing a significant jump in performance.
By the final quarter, the number of complaints had dropped further to 829, with 638 resolved. Some DisCos, such as Kano and Kaduna, achieved a 100 per cent resolution rate. The commission stressed the importance of continued oversight and enforcement to ensure that all DisCos meet required standards.
Decentralization of Electricity Regulation
The decline in the number of complaints also reflects the decentralization of electricity regulation in Nigeria. The commission has stopped reporting complaints from states that have established State Electricity Regulatory Agencies, marking a shift towards more localized oversight.
As of now, 15 states have transitioned to independent market oversight, while 21 others, including Rivers and Kano, are still in the process of assuming regulatory control. This development is part of broader reforms aimed at improving efficiency and accountability in the power sector.
Performance Variations Among Distribution Companies
The reports also highlighted disparities in performance among DisCos. Customers of Ikeja and Eko DisCos consistently filed the highest number of complaints, indicating ongoing challenges in service delivery and billing. In contrast, utilities like Kano DisCo and Aba Power recorded the lowest number of complaints, though variations in customer base and reporting structures may explain these differences.
While some DisCos achieved resolution rates above 80 per cent, others lagged significantly, underscoring the need for continued regulatory intervention.
Ongoing Challenges in the Power Sector
Nigeria’s power sector has long faced challenges related to estimated billing, metering gaps, and unreliable supply. These issues have often led to friction between consumers and providers. The Electricity Act 2023 sought to address these problems by expanding the regulator’s powers and introducing reforms focused on consumer protection.
The N155.84m in refunds may seem modest compared to the scale of the sector, but it represents a growing emphasis on accountability. The steady rise in complaint resolution rates suggests that regulatory efforts are beginning to make an impact, even as systemic challenges persist.
Conclusion
For consumers, the data underscores the persistent nature of billing disputes, metering issues, and service interruptions. However, the gradual improvements in resolution rates signal a positive shift. As the commission continues to strengthen oversight and enforce compliance, the hope is that these efforts will lead to better service delivery and greater trust in the Nigerian Electricity Supply Industry.
