In a clarifying statement issued Friday, February 13, 2026, the DisCo confirmed that the directive is a strict Business-to-Business (B2B) requirement, affecting only corporate customers, vendors, and strategic partners, not residential household consumers.

The move is a direct response to the Nigeria Tax Act (NTA) 2025, which has introduced a more aggressive digital trail for corporate transactions and VAT verification.

For Ikeja Electric, the data update isn’t just about tax; it is an evolution of their Know Your Business (KYB) and Know Your Customer (KYC) procedures.

By linking TINs to corporate accounts, the DisCo is aligning its internal database with the Nigeria Revenue Service (NRS) portal.

Digital Invoicing: Under the NTA 2025, supplier invoices must now carry specific metadata, including the company’s Tax ID and Corporate Affairs Commission (CAC) registration number.

The NRS Portal: The implementation framework requires all corporate invoices to be uploaded and validated on the NRS portal.

For this automated validation to occur, the recipient’s (corporate customer’s) Tax ID is a mandatory data field.

Strategic Compliance vs. Operational Friction

The initial notice, which set a February 20 deadline, sparked fears of mass service suspensions.

However, IE has clarified that the deadline is a compliance milestone for business entities to ensure their invoices remain “tax-valid” under the new law.

“The notice applies strictly to corporate customers (B2B), as well as our vendors and strategic business partners,” the company stated. “The customer’s Tax ID becomes mandatory for processing and verification where validated invoices are transmitted through the [NRS] portal.”

The Digitization of the Nigerian Tax Rail

This directive is a textbook example of the “Invisible Infrastructure” shift highlighted in recent financial blueprints like The Re-Architecture Project.

By mandating TINs for B2B transactions, the government is effectively turning utility companies into data-gathering nodes for the NRS.

For businesses, this means that electricity bills are no longer just operational costs; they are now verifiable tax documents.

Failure to provide a TIN wouldn’t just risk a “service suspension“, it would essentially make it impossible for a company to claim VAT input or legitimate business expenses on their utility spend, as the invoice would fail NRS validation.

Residential users can breathe easy, but for the corporate sector, the message is clear: the era of anonymous business utility consumption is over.

This is despite consistent complaints over poor power supply by consumers and high tariffs, the 11 Discos increased their income by 46.96% from N604.15bn recorded in the same period of 2023, spanning January to July.

This information emerges as stakeholders in the sector decreased their borrowings from commercial banks by N28.82bn.

According to an analysis of data released by the Nigerian Electricity Regulatory Commission, which contains Discos’ commercial performance for the seven months, the distribution companies had billed a total of N1.114tn over the period under review but were able to collect N887.86bn, achieving 79.7% revenue collection efficiency in the country.

During the previous period of 2023, the companies issued bills totaling N797.18bn, while they managed to collect N604.15bn.

After about two years of tariff freeze in the power sector, the Federal Government had in April increased the rate paid per kilowatt-hour of electricity from about N68 to N225 for B and A customers, who it said consistently enjoyed 20 hours of supply daily.

However, after an intense public uproar, NERC announced an 8.1% reduction to N206.8/kWh in the electricity tariff rate for Band A customers. The hike in electricity tariffs has put many Nigerians under heavy energy bills.

A breakdown of the monthly revenue showed that N95bn was generated in January out of N130.92bn billed for the month.

For record, the sum of N97bn was collected in February out of projected N113bn, N100.44bn was generated in March out of N126.56bn billed, N142.92bn was made in April out of N178.72bn, and N139.23bn was generated in May out of N191.65bn billed for the month.

In June, the revenue increased to N150.86bn out of an estimated billing of N176.57bn while N162.14bn was collected out of N197.11bn in July. A comparison of the N95bn January revenue and N197.11bn generated in May gives a difference of N102.11bn, which is 107.48 per cent of the former.

With the current revenue collection pattern in the first seven months of 2024, the Discos have already exceeded their revenue for the whole of 2020 and are underway to break the records for 2021,2022 and 2023 by the end of 2024.

Furthermore, data from the National Bureau of Statistics(NBS), show an upward trajectory of N526.8bn in 2020, N761.2bn in 2021, N828.1bn in 2022, and N1.1tn in 2023. With this considerable rise in revenue, the Discos are expected to plough back part into building the much-needed investment in infrastructure.

The electricity distributors have in the past been accused of under-investing in infrastructure to boost power supply to over 200 million Nigerians, who currently depend more on self-generated power for their homes and businesses, instead of the national grid.

Meanwhile, just last week, Adebayo Adelabu, Nigeria’s Minister of Power, assured Nigerians of a possible reduction in the price of electricity in the coming months, following a current effort to step up the generation and distribution of power. However, Nigerians remain skeptical about the potential reduction, as many communities continue to appeal to be removed from the highest-paying tariff, which negatively impacts the cost of living and hampers economic growth.

Recall that the government in May secured a $500m loan from the World Bank to fund electricity Distribution Companies. According to the Bureau of Public Enterprises, the loan would fill financing gaps in the distribution segment, considered as the most problematic in the industry.

It is expected that Discos would invest the funds “in critical distribution infrastructure; Improve ATC&C losses; increase power supply reliability; achieve financial sustainability in the power sector; and enhance transparency and accountability. Significant progress has been made in the preparation of the DISREP Programme,” BPE explained.

Meanwhile, players in the power and energy sector have reduced their borrowing from commercial banks by N28.82bn amidst the increased cost of debt servicing fuelled by high interest rates. An analysis of the Central Bank’s quarterly statistics, showed that the power sector reduced its loans from N1.12tn in January 2024 to N1.08tn in June.

Monday, Ikeja Electric also revealed six organisations where various capacities of meters at different prices can be procured.

According to the Electricity Distribution Company (DisCo), 1-Phase (Smart Meter- PLC) will sell for #112,853.50, the 3-Phase (Smart Meter-PLC) #214,403.38.

However, 1-Phase (Smart Meter-GSM/GPRS) price ranges from; #111,235.63, #112,337.76 and #96,750.00 respectively.

Furthermore, the 3-Phase (Smart Meter-GSM/GPRS) can be procure for prices around; #213,597.13, 206,737.42, and 182,750.00 respectively. Meanwhile, the prices for the 1-Phase(Smart Meter-Cellular)are; #112,235.63, #115,025.00, #112,337.76 and #114,487.50.

The 3-phase (Smart Meter Din-Rail-PLC), goes for; #213,597.13, #218,225.00, #206,737.42, and #217,687.50. But customers can buy the 1-Phase (D-in-Rail-PLC) for #93,525.00, while the 1-Phase (Din-Rail-RF) can be purchased for the sum of #133,300.00 and #91,375.00 respectively.

It is important to note that a public opinion poll conducted by NOI Polls, revealed ownership of fixed pre-paid metering is limited to only 37 per cent of the electricity customers in Nigeria.

The rest of the customers are divided among those who use post-paid meters and those who do not have a meter, but simply pay fixed amounts of money for electricity. Being the most efficient way to distribute electricity, usage of pre-paid meters is highest in the North-East zone and lowest in the South-East zone.

Further findings revealed that among all respondents, those paying amounts within the band of ₦1,000 – ₦5,000 per month represent the largest group of users (44 per cent).

More findings showed that on average, most electricity customers around the country (68 per cent) have a power supply for less than 9 hours per day including 5 per cent that have no electricity supply at all.

In addition, when respondents were asked if they are willing to pay more to get 24 hours of electricity, findings revealed that most of the respondents (67 per cent) expressed willingness to pay more for a steady electricity supply in their respective households.

Earlier this year, Musiliu Oseni, the NERC Vice Chairman, announced hike in electricity tariffs, he disclosed this while speaking at a press conference in Abuja.

Mr Oseni explained that only electricity customers in Band A would be affected by the increase.

He noted that the increase would not affect Bands B, C, D and E while noting that the number of customers previously on Band A has been reduced. Band A customers are offered an average daily electricity supply of 20 hours, although many complain they do not get up to that.

The official said, the Band A consumers represent 15 per cent of the population but consume 40 per cent of the nation’s electricity.

Accordingly, he said, power distribution companies (DisCos), will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.

“We currently have 800 feeders that are categorised as Band A feeders, but upon reviewing those feeders’ performance, the commission has now reduced it to under 500.

“This means that 17 per cent now qualify as Band A feeders. Those are the feeders that are currently meeting the average 20 hours average.

“So we have just 17 per cent of the total feeders of the distribution companies now qualify as Band A feeders. That is, when you look at where those feeders are critically, it is estimated that under 15 per cent of customers are currently connected to those feeders.

So based on that, feeders are not meeting the 24-hour supply and have been asked to be downgraded immediately, with strict compliance and strong enforcement action,” he said.

He added that the commission now sets its review for that application by the distribution companies and has decided that only the 17 per cent feeders, that is, the 15 per cent customers, will be affected by any increase that the commission will approve for this distribution company.

“And in that order, the commission has approved a rate review of N225 per kilowatt hour for just under 15 per cent of the customer population.

So that means less than 15 per cent of the customers will be affected. The commission has issued an order which is titled April Supplementary Order taking effect from today,” Mr Oseni said.

According to the Governor of the Central Bank of Nigeria, Godwin Emefiele, it was designed to improve the liquidity status of the DisCos and aid in the recovery of legacy debt. ‘With this, the total disbursement under the facility now stands at N254.39 billion,’ he added.

The Central Bank of Nigeria (CBN) has, however, disbursed N18.26 billion to the first batch of beneficiaries of the Nigeria Electricity Market Stabilization Facility (N213 billion) (NEMSF).

This group consists of two electricity distribution companies (DISCOs) and three power generation companies (GENCOs).

In December 2014, the Central Bank of Nigeria set up the Nigeria Electricity Market Stabilization Fund (NEMSF) in a bid to solve the liquidity challenges that faced the Nigeria Electricity Supply Industry (NESI). 

It aimed to settle the outstanding payment obligations due to market participants, service providers, and gas suppliers under the Interim Rules Period. Its overall objective is to put NESI on the side of economic viability and sustainability. 

According to a report obtained by TechEconomy, the CBN NEMSF did not attain the desired objectives for which it was set up, as the liquidity challenges in the electricity market still remain; it has actually gotten worse. It was reported that the current liquidity crisis in the electricity market stood at about N1 trillion as of December 2016. 

“A total of N120.2 billion out of the fund’s N213.41 billion was disbursed to various qualified market participants before the fund was suspended as a result of operating technical issues that led the DISCOs to declare force majeure. 

“It is also a fact that remittances of the DISCOs to the Market Operator have not improved as data presented in this work showed a cumulative payment of N8.65 billion out of N23.88 billion for Q1 2016. 

“An empirical analysis presented in Chapter 5.0 showed that NEMSF did not contribute to improvements in power supply. The issue of non-performing bank loans points to the fact that most investors in the electricity market do not have the financial capability to drive viability in the market, therefore making a case for new capable investors to be brought in. “