Despite a 107% surge in electricity billing, Nigeria’s 12 electricity distribution companies (DisCos) recorded a revenue shortfall of over ₦202 billion in the first quarter of 2025, highlighting deepening inefficiencies in the nation’s power sector.
According to the latest data released by the Nigerian Electricity Regulatory Commission (NERC), DisCos billed customers a total of ₦761.91bn between January and March 2025—up from ₦368.65bn in the same period last year. However, only ₦559.3bn was recovered, reflecting a 73.4% collection efficiency and a significant shortfall of ₦202.61bn.
This is a stark increase from Q1 2024, when DisCos collected ₦291.62bn of ₦368.65bn billed, leaving a ₦77.03bn gap. While billing has increased sharply, the actual financial losses have more than doubled year-on-year.
Performance across the 12 DisCos varied widely. Ikeja Electric, the highest billing Disco, invoiced ₦129.91bn but recovered ₦101.2bn, a 22.1% loss. Abuja, Eko, and Ibadan DisCos also recorded shortfalls of ₦21.63bn, ₦22.25bn, and ₦21.15bn respectively. On the lower end, Kaduna and Yola DisCos posted alarming shortfalls of over 50%, with Kaduna recovering only ₦11.72bn of ₦24.22bn billed.
Jos Disco collected just ₦17.13bn out of ₦36.31bn, while Yola managed only ₦8.2bn of its ₦14.42bn bill. Aba Power, the newest entrant, also faced a ₦8.33bn deficit, collecting ₦9.32bn out of ₦17.65bn billed.
The Minister of Power, Adebayo Adelabu, expressed concern over the sector’s poor performance, citing chronic underinvestment in metering, network upgrades, and revenue assurance systems. “The DisCos are not meeting expectations,” he said, hinting that the government might revoke licenses of persistently underperforming operators.
Experts warn that these revenue gaps threaten the entire electricity value chain—from generation to distribution—by starving the system of necessary funds. Despite rising bills, power supply remains epileptic across much of Nigeria, with numerous feeders experiencing regular faults.
In response, Abuja Electricity Distribution Company recently refunded ₦241.45m to nearly 10,000 customers over billing errors and regulatory violations.
Critics say the revenue woes are worsened by failure to meter customers, arbitrary billing, and continued load rejection by DisCos. “Many DisCos are not complying with regulatory requirements,” said Uket Obonga, National Secretary of the Nigeria Electricity Consumer Advocacy Network (NECAN). “They’re rejecting loads and inflating bills for unmetered customers.”
Obonga also accused DisCos of flouting NERC’s directives on energy caps, despite penalties. “They have failed to invest meaningfully in infrastructure since acquiring their stakes. Without further investment, the system will continue to deteriorate,” he added.
NERC’s report urges urgent action to close the metering gap, improve billing transparency, and enhance trust in the system. But unless structural reforms are implemented, the challenges of poor revenue collection, inadequate power supply, and consumer dissatisfaction may persist.
