The Nigerian Electricity Regulatory Commission has released a comprehensive report showing significant variations in bill collection performance among electricity distribution companies across the country during the second quarter of 2025.
Top Performers in Revenue Collection
According to the NERC data, electricity distribution companies received a total of ₦564.71 billion out of ₦742.34 billion billed to customers between April and June 2025. This represents a collection efficiency rate of 76%, marking a slight improvement from the 74% recorded in the previous quarter.
Three distribution companies emerged as clear leaders in revenue collection. Eko Electricity Distribution Company collected ₦106 billion from ₦120 billion billed, demonstrating exceptional performance in revenue recovery. Close behind, Ikeja Electric recorded ₦105 billion in actual revenue against ₦127 billion billed, while Abuja Electricity Distribution Company recovered ₦89 billion from ₦116 billion billed to customers.
Struggling DisCos and Regional Disparities
The report revealed stark contrasts in performance across different regions. While some companies excelled, others faced significant challenges in bill collection.
Port Harcourt Electricity Distribution Company showed the most impressive quarter-on-quarter improvement, increasing its collection efficiency to 70% - a notable 9.77% rise from the previous quarter.
However, the situation remained dire for several distribution companies. Jos Electricity Distribution Company recorded one of the poorest performances with collection efficiency at just 44%. Similarly, Kaduna Electric remitted only ₦13 billion against ₦26 billion billed, and Yola Electricity Distribution Company collected merely ₦9 billion from ₦16 billion billed to customers.
The Critical Role of Metering Infrastructure
The NERC report emphasized the crucial connection between metering and payment behavior. The commission noted that locations with higher metering coverage consistently reported stronger repayment rates, as customers perceive the billing system as more transparent and reflective of actual consumption.
Currently, Nigeria faces a significant metering gap. The report indicates that only 54.3% of power consumers were properly metered during the review period, leaving nearly half of all customers dependent on estimated billing systems that often lead to payment disputes and low collection rates.
With approximately 11.8 million registered electricity users nationwide, only 6.42 million had functional meters as of the second quarter of 2025. Although distribution companies installed 225,631 meters during the quarter, the metering deficit remains substantial.
Meter Installation Progress Across DisCos
The meter installation drive showed varying levels of progress across different distribution companies. Ibadan DisCo led the initiative by adding 45,000 new meters during the quarter, followed by Ikeja Electric with 39,000 installations and Abuja DisCo with 32,000 new meters.
Other notable installations included Benin DisCo (28,000), Eko DisCo (21,000), and Enugu DisCo (17,000). In terms of overall metering coverage, Ikeja Electric maintained its leading position with 85% of customers metered.
Conversely, Yola (29%), Jos (30%), and Kaduna (33%) recorded the lowest metering rates, highlighting significant infrastructure gaps that continue to hamper revenue collection efforts.
Addressing Liquidity Challenges
The improved collection efficiency comes at a critical time for distribution companies facing severe liquidity challenges. The power sector regulator had previously indicated it might assume control of some distribution companies due to worsening financial conditions.
Distribution companies have been struggling with revenue estimation and collection, a situation compounded by rising debt levels across the electricity value chain. The recent improvement in collection efficiency, if sustained, could gradually help ease the liquidity pressures facing the distribution companies and contribute to overall sector stability.
The NERC report serves as both a performance assessment and a call to action for distribution companies to intensify their metering programs and improve customer engagement to enhance revenue collection across the Nigerian electricity market.
