NERC Eyes Fintech Collaboration To Enhance Electricity Market Liquidity

The Nigerian Electricity Regulatory Commission (NERC) has signalled strong interest in partnering with eTranzact International Plc to deploy fintech solutions that boost liquidity, operational efficiency, and service delivery in the Nigerian Electricity Supply Industry (NESI).

The move comes amid persistent liquidity crises plaguing the sector, where distribution companies (DisCos) grapple with high aggregate technical, commercial, and collection (ATC&C) losses—often exceeding 40 per cent in some regions.

These inefficiencies, compounded by consumer payment defaults, metering gaps, and estimated billing disputes, have created a vicious cycle of unpaid subsidies, stranded debts estimated at over N3 trillion, and stalled investments in generation and transmission. NERC’s 2025 reports highlighted how poor revenue assurance hampers DisCos’ ability to settle invoices with generating companies (GenCos), threatening grid stability and affordable tariffs.

During a courtesy visit by eTranzact’s management team to NERC headquarters, NERC chairman Dr Musiliu Oseni reaffirmed the regulator’s commitment to innovations tackling these pain points.

“We are dedicated to supporting technologies that enhance liquidity, operational efficiency, and service delivery across NESI,” Dr. Oseni stated, in a post on the commission’s X handle, on Sunday.

Led by the managing director and CEO, Niyi Toluwalope, the eTranzact delegation showcased a suite of tailored fintech offerings. Key among them is a platform enabling electricity consumers to purchase power and pay in instalments, alongside digital payment gateways and settlement systems designed to minimise losses and accelerate cash flows for DisCos.

Both parties expressed eagerness to explore joint initiatives leveraging fintech to build robust payment systems, improve revenue assurance, and sustain NESI in the long term.

Such collaborations could mirror successful pilots like the DisCo metering payment schemes, which have begun chipping away at liquidity shortfalls.

NERC, established under the Electricity Act 2023, regulates the interstate electricity market to promote transparency, efficiency, and reliability. eTranzact International Plc is a leading Nigerian fintech firm specialising in digital payment infrastructure and e-invoicing solutions.