Nigeria’s electricity distribution companies (DISCOs) have recorded a sharp rise in earnings despite persistent nationwide complaints over epileptic power supply and the burden of estimated billing.
According to industry data, the firms generated a total of ₦1.132 trillion between January and June 2025 — representing a 39.7 percent increase compared to ₦810.86 billion during the same period in 2024.
A monthly breakdown of the earnings shows ₦178.68 billion was collected in January, ₦191.75 billion in February, ₦188.89 billion in March, ₦199.85 billion in April, ₦191.57 billion in May, and ₦182.11 billion in June.
This revenue growth comes against the backdrop of worsening power supply in 2025, with frequent outages crippling businesses in manufacturing and services, and forcing households to rely more heavily on costly alternatives such as diesel and petrol generators, solar systems, and inverters. The Transmission Company of Nigeria (TCN) has also been unable to wheel about 16,384 megawatts from the generation companies, further highlighting inefficiencies in the sector.
The figures have sparked outrage among consumers and stakeholders, many of whom are questioning how revenues continue to soar even as service delivery remains poor.
Industry Reactions
Defending the rise in collections, Sunday Oduntan, managing director of the Association of Nigerian Electricity Distributors (ANED), attributed the gains to policy reforms. “The administration of President Bola Tinubu has created an enabling environment, policies, and some initiatives, leading to increased investment, generation, supply, and revenue collection than in the past,” Oduntan told Vanguard.
Adetayo Adegbemle, Executive Director of PowerUp Nigeria, a consumer advocacy group, suggested that improved metering under the Nigerian Electricity Regulatory Commission’s (NERC) Meter Acquisition Fund may be playing a role. “We might be seeing the effects of metering, as meters… are now being installed,” he noted.
However, Adegbemle also pointed to subsidy as one of the most pressing challenges facing Nigeria’s power sector. “Historically, the Nigerian government has been paying electricity subsidy to the Nigeria Electricity Supply Industry (NESI). This variance, otherwise called ‘subsidy’, has now turned into an elephant in the chinaware shop,” he explained, stressing that the policy has weighed heavily on government finances while discouraging efficiency.
Subsidies, which bridge the gap between the true cost of electricity (cost-reflective tariff) and the lower rate consumers are allowed to pay, have long been a fiscal strain. Between 2015 and 2020 alone, shortfalls in allowed tariffs stood at about ₦2.4 trillion — averaging ₦200 billion annually. In 2022, subsidy payments were over ₦600 billion, and projections placed the figure at more than ₦1 trillion in 2024.
Although the government introduced the Service-Based Tariff (SBT) in 2020 to gradually phase out subsidies, the lingering shortfalls continue to weigh on sector performance, even as DISCOs record higher revenues.
The Larger Picture
The paradox of growing revenues alongside worsening supply highlights the structural imbalances in Nigeria’s power sector. While reforms and metering initiatives are improving collections, consumers remain trapped between poor service delivery and rising costs of alternative energy.
As the debate over subsidy removal and tariff adjustment deepens, stakeholders warn that economic stability depends on finding a balance: ensuring financial sustainability for power companies while delivering affordable, reliable electricity to Nigerians.