Nigeria’s electricity distribution companies (DisCos) failed to recover ₦54.18 billion in revenue in February 2025, despite issuing bills totalling ₦245.93 billion to consumers, according to the Nigerian Electricity Regulatory Commission (NERC).
The data, released by NERC in its monthly commercial performance report, showed that the DisCos only managed to collect ₦191.75 billion during the period, reflecting a collection efficiency of 77.97 per cent.
The report also revealed that out of 2,583.19 gigawatt-hours (GWh) of energy received in the month, only 2,135 GWh was billed to customers, leaving 446.19 GWh unaccounted for — a billing efficiency of 82.73 per cent.
Revenue recovery was further hindered by a significant gap between the average collection tariff and the actual cost of electricity. While the regulated tariff stood at ₦116.18 per kilowatt-hour (kWh), the average collection by DisCos was just ₦88.21/kWh. The ₦27.97/kWh difference represented the implicit subsidy borne by the government in February.
Among the DisCos, Ikeja recorded the highest energy intake at 400.04 GWh, billing 332.37 GWh with a billing efficiency of 83.08 per cent. Eko DisCo followed closely, receiving 365 GWh and billing 325.45 GWh at 89.02 per cent efficiency, while Abuja DisCo billed 278 GWh out of 385 GWh received, with a 77.08 per cent efficiency.
In terms of cash collection, Eko DisCo led with ₦41.24 billion, followed by Ikeja with ₦41.18 billion and Abuja with ₦35.67 billion. Meanwhile, Yola, Kaduna, and Kano DisCos recorded the lowest collection figures at ₦60.2 billion, ₦117.21 billion, and ₦127.78 billion respectively. Aba DisCo, with the fewest customers, posted a modest ₦32.61 billion.
The revenue shortfall adds to the growing financial strain in Nigeria’s electricity sector, with experts warning it could affect investments, infrastructure upgrades, and the delivery of stable power to end users.
“This level of revenue loss is unsustainable,” stated Aisha Mohammed, an energy analyst at the Lagos-based Centre for Development. “The DisCos need to significantly improve their collection efficiency to ensure the financial viability of the power sector.”
