The latest Nigeria Electricity Report: Energy Billed, Revenue Generated and Customers by DISCOs (Q4 2025), compiled from data provided by the Nigerian Electricity Regulatory Commission (NERC), paints a mixed picture of the country's power sector. While key operational indicators improved, the industry experienced a significant decline in customer numbers, highlighting the continued impact of unreliable electricity supply and rising energy costs on consumers.
According to the report, the total number of electricity customers dropped from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025, representing a year-on-year decline of 8.52 per cent, or 1,133,390 customers.
However, on a quarterly basis, customer numbers recorded a slight recovery.
The report stated: "Total customer numbers in Q4 2025 stood at 12.16 million, up from 12.03 million in Q3 2025, representing a 1.11 per cent quarter-on-quarter increase. On a year-on-year basis, the number of customers declined by 8.52 per cent, from 13.30 million recorded in Q4 2024."
Despite the shrinking customer base, electricity supplied by the distribution companies increased during the period. Energy delivered rose by 6.76 per cent, climbing from 6,207.85 gigawatt-hours (GWh) in the fourth quarter of 2024 to 6,627.56GWh in the same quarter of 2025.
Revenue performance also reached new highs.
The NBS reported that total revenue generated by the Discos increased by 23.75 per cent year-on-year, rising from N509.84 billion in Q4 2024 to N630.93 billion in Q4 2025. Annual collections equally grew significantly, increasing from N1.69 trillion in 2024 to N2.32 trillion in 2025, reflecting stronger collections and tariff adjustments across parts of the sector.
Among the distribution companies, Ikeja Electricity Distribution Company generated the highest annual revenue at N440.86 billion, followed by Eko Disco with N420.57 billion, while Abuja Disco posted N375.95 billion.
Metering also continued to improve during the year, a development regulators have consistently identified as key to reducing estimated billing and improving transparency.
The number of metered customers rose from 6.21 million to 6.97 million, representing a 12.18 per cent increase within one year. As a result, the share of customers using prepaid meters increased from 46.71 per cent in December 2024 to 57.27 per cent by December 2025.
At the same time, the number of customers on estimated billing declined significantly. Unmetered customers dropped from 7.09 million to 5.20 million, representing a 26.67 per cent reduction.
The report stated: "Similarly, the number of metered customers reached 6.97 million in Q4 2025, representing a 4.58 per cent increase from 6.66 million recorded in the preceding quarter. On a year-on-year basis, metered customers increased by 12.18 per cent.
"In addition, the number of estimated customers stood at 5.20 million in Q4 2025… On a year-on-year basis, estimated customers decreased by 26.67 per cent."
Although metering improved and revenues increased, several distribution companies suffered substantial customer losses.
Benin Electricity Distribution Company recorded the highest decline, losing 379,616 customers, followed by Kaduna Disco, which lost 341,150 customers, while Yola Disco shed 311,527 customers.
Other companies that recorded declines included Ibadan Disco, which lost 199,409 customers, as well as Port Harcourt, Kano, Eko and Jos distribution companies.
In contrast, a few operators expanded their customer base during the period. Enugu Electricity Distribution Company added 245,129 customers, Abuja Disco gained 146,378, while Ikeja Disco recorded an increase of 22,016 customers.
The latest figures come amid growing migration away from the national grid by households, manufacturers and large commercial users seeking more reliable power through self-generation and alternative energy sources.
Earlier reports by BrandIconImage showed that 24 bulk electricity consumers obtained licences in 2024 to disconnect from the national grid and generate their own electricity, while another 22 organisations secured off-grid generation permits with a combined capacity of approximately 289 megawatts.
The publication also reported that nearly 250 manufacturers and tertiary institutions have exited distribution company networks in favour of independent power generation due to persistent electricity supply challenges.
More recently, BrandIconImage reported that companies listed on the Nigerian Exchange spent N400.83 billion on alternative energy sources during the first quarter of 2026, representing a 3.66 per cent increase from the N386.67 billion recorded in the corresponding period of 2025.
The newspaper further found that firms which separately disclosed electricity expenses recorded an 81.50 per cent increase in power costs, underscoring the combined effect of higher electricity tariffs and continued reliance on diesel, gas and other alternative energy sources to sustain operations.
Despite the challenges facing the sector, the Minister of Power, Chief Joseph Tegbe, has expressed optimism that electricity supply will improve before the end of the year, maintaining that the Federal Government is implementing difficult but necessary reforms aimed at addressing decades of underinvestment, infrastructure deficits and poor management across Nigeria's power industry.