INTRODUCTION
In furtherance of the implementation of the Nigerian Electricity
Regulatory Commission ("NERC")'s Order No.
NERC/183/2019, which mandates the migration of Industrial,
Commercial and R3 (now Maximum Demand Residential) customers to
cashless payment platforms and registration of collection agents
and service providers in order to reduce collection losses within
the Nigerian Electricity Supply Industry ("NESI"), NERC
issued the Guidelines on the Registration and Engagement of
Third‑Party Collection Service Providers (the
"Guidelines") on May 27, 2025.
The Guidelines introduces a clear framework for the engagement
of Third‑party Collection Service Providers
("CSPs") by
Distribution Companies ("DisCos") and the registration of
CSPs with NERC. CSPs are agents engaged by DisCos to facilitate
billing and payment collection from the sale of electricity to
non‑Maximum Demand end‑users. These include Super
Agents, Sub‑Agents, Payment Solution Service Providers, and
Payment Terminal Service Providers.
In this Newsletter, we examine the key highlights of the Guidelines as well as implications for relevant stakeholders.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
