(DDM) – The Nigerian Electricity Regulatory Commission (NERC) has set a strict deadline of 31 December 2025 for the re-registration of all electricity Collection Service Providers (CSPs) operating in the country, imposing a non-refundable registration fee of N100,000.
The regulatory body emphasized that any CSP failing to complete registration by the deadline will have its contract automatically rendered invalid.
NERC further clarified that only entities with valid Central Bank of Nigeria (CBN) licenses, including banks, Payment Service Providers (PSSPs), Payment Terminal Service Providers (PTSPs), Mobile Money Operators (MMOs), switching companies, card schemes, and super-agents, are eligible to operate as CSPs.
The commission also imposed strict caps on commissions charged across all collection channels, aiming to curb arbitrary fees that have long plagued electricity billing in Nigeria.
According to NERC, USSD transactions below N5,000 will attract a maximum commission of N20, while transactions above N5,000 will be capped at N50. Banking and switching channels, such as apps, ATMs, and gateways, will have commissions ranging from 0.75 per cent to 1.10 per cent, with hard caps at N2,000. Mobile services, web-based platforms, IVR, and NQR transactions are capped at 1.5 per cent, also not exceeding N2,000 per transaction.
Agency and rural services, including PoS agents and kiosks, will be capped between 1.5 per cent and 3.25 per cent depending on transaction size, with maximum limits of N2,000 to N5,000.
NERC stressed that CSPs are only allowed to earn commissions for collection services. Charging for unrelated services such as IT support or marketing is strictly prohibited.
The commission also directed that all collection contracts must ensure timely settlement, except for banks and switching firms, which are required to settle on a T+1 basis.
Maximum Demand customers are exempt from third-party collections and are required to pay directly into the distribution companies’ accounts without commission to any agent.
The new directive is part of NERC’s ongoing effort to enforce the 2019 Order NERC/183/2019, which mandated the migration of industrial, commercial, and residential customers to cashless electricity bill settlement platforms.
The policy was designed to eliminate leakages, enhance transparency, and ensure payments flow directly into utility accounts.
Despite the original order, cash transactions, particularly in rural and agency banking channels, remained widespread, with unregistered agents charging arbitrary and inflated fees.
The commission’s new framework aims to end these practices and protect consumers while ensuring CSPs operate within regulated guidelines.
To register, CSPs must submit valid CBN licenses, signed agreements with relevant distribution companies, CAC incorporation documents, banker references, tax clearance certificates, VAT registration, lists of sub-agents, API integration agreements with NIBSS, and proof of payment of the N100,000 non-refundable registration fee.
NERC concluded that the rules will remain in force until formally amended, reinforcing transparency, efficiency, and accountability in electricity bill collection nationwide.