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The short answer
₦10,000 on Ikeja Electric does not all buy energy: VAT comes out first, and any debt the DisCo is recovering on your meter comes out too, before the rest is divided by your band's tariff. As an example at 7.5% VAT and NERC's July 2025 Band A rate of ₦209.50 per kWh, ₦10,000 with no debt gives about 44.4 kWh. Your receipt shows the actual lines.
A common complaint from Ikeja Electric customers runs like this: "I paid ₦10,000 and the units do not match the tariff." Usually nothing has gone wrong. The tariff NERC publishes is a price for energy alone, and the amount you pay also has to cover tax and, sometimes, an old balance. Once you separate those lines the numbers make sense.
Where your ₦10,000 goes
- VAT: value added tax on the energy you buy. It appears as its own line on the receipt.
- Debt recovery: if your meter carries an outstanding balance, for example from a postpaid account converted to prepaid, IE can recover part of it from each vend. It also appears on the receipt.
- Energy: what is left, divided by your band tariff, becomes your units.
NERC's tariff orders state tariffs per kWh; the July 2025 order for IE does not mention VAT at all, which is why the receipt, not the order, is where to see the tax.
Worked example: ₦10,000 on Band A
Example only. It assumes VAT at 7.5% is contained in the amount paid and uses the Band A tariff of ₦209.50 per kWh from ORDER/NERC/2025/064 (effective 1 July 2025). Check your receipt for the actual VAT treatment and today's tariff.
| Line | No debt | With ₦1,500 debt recovery |
|---|---|---|
| Amount paid | ₦10,000.00 | ₦10,000.00 |
| Debt recovery | ₦0.00 | ₦1,500.00 |
| VAT (7.5 ÷ 107.5 of the remainder) | ₦697.67 | ₦593.02 |
| Energy value | ₦9,302.33 | ₦7,906.98 |
| Units at ₦209.50/kWh | 44.40 kWh | 37.74 kWh |
A customer who divides ₦10,000 by ₦209.50 expects 47.73 kWh. On these assumptions VAT alone explains the drop to 44.40, and a debt line explains the rest. The order in which a DisCo applies debt and tax can differ, so use the figures printed on your receipt.
Other reasons units look low
Your band changed
A feeder upgraded to Band A moves you from a tariff of tens of naira per kWh to ₦209.50 (July 2025 figures), so the same ₦10,000 buys far fewer units. The July 2025 order upgraded five IE feeders from Band B or C. See how to check your feeder's band.
A meter refund or debt arrangement
Some customers receive monthly energy credits for MAP meters they paid for, as NERC's February 2026 order describes; those come as separate tokens and should not be netted against debt. Others have debt deductions set as a share of each vend. Ask IE for the basis of any deduction you do not recognise.
What to check first
- Read every line on the receipt: amount, VAT, debt, energy amount, tariff and units.
- Divide the energy amount by the tariff printed. It should equal the units, give or take rounding.
- Compare the tariff to your band in NERC's latest IE order.
- If there is a debt line you dispute, write to IE for a statement of the balance and how it arose.
- If unresolved, escalate as set out in how to complain to your DisCo and NERC.
The general version of this breakdown, for any DisCo, is in what a ₦10,000 token actually pays for.
How the VAT share works
When tax is contained within the price you pay, the tax share is not 7.5% of the amount but 7.5 parts in 107.5. That is why the example takes ₦697.67, not ₦750, from ₦10,000. If a receipt instead adds VAT on top of an energy value, the energy amount is the starting figure and the tax is 7.5% of it. Either method is easy to spot: add the VAT and energy lines together and see whether they equal what you paid.
| Amount paid (example) | VAT within it at 7.5% | Energy value | Band A units at ₦209.50 |
|---|---|---|---|
| ₦3,000 | ₦209.30 | ₦2,790.70 | 13.32 kWh |
| ₦10,000 | ₦697.67 | ₦9,302.33 | 44.40 kWh |
| ₦25,000 | ₦1,744.19 | ₦23,255.81 | 111.01 kWh |
The table is an example only. The rate and method that apply to your vend are on your receipt.
Postpaid customers see the same parts differently
On a postpaid bill the same three elements appear as lines on a monthly statement rather than on a token receipt: energy charged at your band tariff, VAT on that charge, and any arrears brought forward. If you were moved from postpaid to prepaid, an unsettled arrears figure is a common source of the debt line that later appears on tokens. Ask IE to show the opening balance it carried across and how much of each vend goes towards it, so you can work out when the deductions should end.
Where Pryme fits
Buying tokens in the Pryme app keeps every vend in one place, so you can spot when units per naira change and take the receipts to IE. A verifiable receipt from VerifyDoc.ai can be checked by anyone as genuine and unaltered, which helps when a dispute moves to the NERC Forum (receipts).
Questions people ask
Is VAT charged on electricity tokens in Nigeria?
Ikeja Electric token receipts show VAT as a separate line. Check the rate and amount on your own receipt; NERC's tariff order states energy prices without VAT.
Why is my 10k light token giving me fewer units?
VAT and any debt recovery come out before the energy value is divided by your band tariff. A band upgrade also raises the tariff sharply.
How much VAT is on a ₦10,000 token?
As an example at 7.5% contained in the amount, ₦697.67. Your receipt shows the actual figure.
Can Ikeja Electric deduct debt from my prepaid token?
Receipts can show a debt recovery line where an outstanding balance sits on the meter. If you do not recognise it, ask IE in writing for the balance and its basis.
Sources
- NERC: July 2025 Supplementary Order to MYTO 2024, Ikeja Electric (ORDER/NERC/2025/064) · accessed Oct 2026
- TechEconomy: NERC orders DisCos to refund N20.33bn to customers for meter costs (4 March 2026) · accessed Oct 2026
- Legit.ng: NERC orders DisCos to compensate wrongfully disconnected customers (15 October 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.