According to a detailed analysis of the latest report from the Nigerian Electricity Regulatory Commission (NERC), the 12 DisCos billed consumers a total of ₦761.91 billion between January and March 2025—more than double the ₦368.65 billion billed during the same period in 2024. However, actual revenue collected stood at just ₦559.3 billion, reflecting a collection efficiency of 73.4% and leaving ₦202.61 billion unpaid.
Though this marked a nominal improvement in billing volume and collection compared to Q1 2024, the absolute value of revenue losses more than doubled from ₦77.03 billion last year, indicating deeper structural inefficiencies across the electricity value chain.
Revenue Up, Collection Still Lagging
The data highlights a paradox: while DisCos have aggressively expanded billing—likely spurred by recent tariff adjustments—collection performance remains weak, especially in certain regions. This underperformance has triggered warnings from both regulators and industry experts about the long-term viability of the DisCos and their role in Nigeria’s fragile electricity ecosystem.
A breakdown of individual DisCos’ performance reveals a wide gulf in revenue collection efficiency:
- Ikeja Electric, the top-performing Disco by billing volume, issued ₦129.91 billion in invoices but collected ₦101.2 billion, reflecting a shortfall of ₦28.71 billion (22.1%).
- Eko Disco billed ₦123.76 billion and collected ₦101.51 billion (17.9% shortfall).
- Abuja Disco collected ₦88.1 billion out of ₦109.73 billion billed, losing nearly ₦21.63 billion.
- Ibadan, Benin, and Enugu DisCos recorded losses ranging between 19.5% and 25.5%.
At the lower end, Kaduna, Jos, Yola, and Kano DisCos performed even worse. Kaduna Disco managed to collect only ₦11.72 billion out of ₦24.22 billion, while Yola Disco saw a shortfall of over 43%. Jos Disco recorded the worst performance, with a collection efficiency of just 47.2%, leaving over half of billed revenue unrecovered.
Chronic Inefficiencies Raise Red Flags
The revenue shortfalls—compounded by high Aggregate Technical, Commercial and Collection (ATC&C) losses—have reignited debate over the competence and financial accountability of DisCos.
Minister of Power Adebayo Adelabu recently lambasted the utilities for failing to meet operational and financial expectations. “The DisCos are not meeting expectations. There is a serious lack of investment in infrastructure and revenue assurance mechanisms,” he said, warning that non-performing firms could face license revocation.
Analysts argue that these inefficiencies cripple the entire electricity value chain, as poor remittances from DisCos impact upstream transmission and generation companies, which depend on payments to sustain operations and investments.
Consumer Backlash and Regulatory Gaps
Electricity consumers, many of whom face unreliable supply, continue to express frustration. Mr. Uket Obonga, National Secretary of the Nigeria Electricity Consumer Advocacy Network, accused the DisCos of regulatory non-compliance, particularly in areas of metering, energy cap enforcement, and load management.
“There is still the issue of load rejection by the DisCos,” Obonga said. “Aggregate Technical, Commercial, and Collection losses remain high. This is clear evidence that the DisCos are not meeting performance expectations.”
He also questioned the fairness of recent tariff increases, especially for unmetered customers. “Are the DisCos adhering to the approved energy caps or are they just issuing arbitrary bills in total disregard of the regulations?” he asked, adding that some companies continue to misbill consumers despite penalties from NERC.
Investment Deficit Undermining Sector Reform
Obonga criticized the DisCos for failing to make post-acquisition investments in infrastructure upgrades. He noted that the 60% equity stake acquired during privatization has not translated into tangible improvements, and the government’s 40% ownership has delivered little operational benefit.
“The distribution network remains largely underdeveloped. No Disco has brought in the required investment funds for meaningful expansion or modernization,” he said.
According to NERC, tackling the revenue crisis will require urgent attention to network reliability, comprehensive metering, and enhanced billing transparency. Without these structural reforms, the power sector may remain locked in a cycle of underperformance and financial instability.
Outlook
As power sector stakeholders confront mounting financial gaps and growing public dissatisfaction, the future of Nigeria’s electricity supply industry remains uncertain. The first-quarter figures for 2025 offer a stark reminder that without aggressive regulatory enforcement, targeted investment, and improved consumer engagement, Nigeria’s ambition for a sustainable and efficient electricity market may remain out of reach.