Electricity consumers in Nigeria shelled out a staggering sum exceeding N1.13 trillion to distribution companies between April and September 2025, a period marked by notoriously unreliable power supply and national grid failures.
DisCos Rake in Revenue Despite Sector Challenges
The Nigerian Electricity Regulatory Commission (NERC) disclosed these figures in its detailed performance report for the second and third quarters of 2025. The data reveals that despite widespread public outcry over constant blackouts, the revenue flow to DisCos remained robust.
In specific terms, DisCos collected N564.71 billion in Q2 2025 from a total billing of N742.34 billion, achieving a collection efficiency of 76.07%. The performance improved in the following quarter, with N570.25 billion collected in Q3 from N706.61 billion billed, pushing the efficiency rate to 80.70%.
This represents an overall collection increase of 4.63 percentage points across the six-month period. Notably, this revenue growth occurred against a backdrop of severe operational challenges, including a total collapse of the national grid and reduced output from generation companies due to gas supply shortages linked to unpaid debts.
Top and Bottom Performers Among Distribution Companies
The NERC report highlighted significant disparities in the collection performance of the various distribution companies. Ikeja Electricity Distribution Company emerged as the top performer, achieving a perfect 100% collection efficiency in the third quarter.
Other DisCos that recorded efficiencies above 80% included:
- Eko DisCo (88.74%)
- Benin DisCo (86.44%)
- Abuja DisCo (81.60%)
On the opposite end of the spectrum, Kaduna DisCo recorded the lowest efficiency at just 45.67%. A quarter-on-quarter comparison showed that seven DisCos improved their collection efficiency, with Ikeja DisCo posting the largest gain of 17.58 percentage points.
Monthly collection data showed revenue peaked at N192.29 billion in September 2025, the highest monthly figure within the review period. Collections in the second quarter were N197.08 billion in April, N188.70 billion in May, and N178.89 billion in June.
Metering and Strategic Collection Drive Efficiency
NERC attributed the improvement in collection efficiency partly to the ongoing Meter Acquisition Fund (MAF) programme. The regulator reported that by June 2025, under Tranche A of the MAF, 107,461 meters had been installed for Band A customers.
Furthermore, Tranche B of the MAF, which became operational in September 2025, allows DisCos to access up to N28 billion for metering Band A and Band B customers, aiming to enhance billing accuracy and, consequently, revenue collection.
The commission also offered an explanation for the improved efficiency despite a reduction in total energy billing. It noted that during periods of power supply decline, DisCos tend to focus their collection efforts on areas with historically lower commercial losses, thereby optimizing revenue recovery from available supply.
This report underscores the persistent paradox in Nigeria's power sector: consumers are paying increasingly more for a service that remains largely inadequate and unreliable, with the year 2025 ending on a low note as the national grid collapsed on December 29, plunging much of the country into darkness.
