Nigeria’s electricity distribution companies are facing renewed scrutiny after recording an estimated ₦44.27 billion revenue shortfall in the latest reporting period, according to industry data.
The figures, published in the Nigerian Electricity Regulatory Commission (NERC) Commercial Performance Factsheet, point to persistent weaknesses in billing and revenue collection across the power distribution segment.
NERC data shows that DisCos received electricity valued at ₦303.85 billion from the national grid during the period under review. However, customers were billed only ₦255.19 billion of that supply.
This puts industry-wide billing efficiency at 83.9%, meaning electricity worth about ₦48.66 billion was delivered to consumers but never billed.
The revenue challenge deepened at the collection stage. Out of the ₦255.19 billion billed, DisCos were able to recover just ₦210.92 billion, leaving a ₦44.27 billion gap between billed energy and actual cash received.
NERC’s summary highlighted the dual problem: gaps in both billing accuracy and customer payment compliance.
Performance varied widely across the country’s 11 distribution companies.
Kano DisCo led the pack with a billing efficiency of 98.05%, followed closely by Eko DisCo (95.71%) and Ikeja DisCo (94.36%), reflecting relatively stronger systems in parts of Lagos and Kano.
Mid-tier performers included Jos, Kaduna, and Abuja DisCos, all posting billing efficiencies slightly above the national average.
At the lower end were Ibadan, Yola, and Benin DisCos, with Benin recording the weakest result at 65.32%, raising concerns about operational controls and customer enumeration.
These inefficiencies place additional strain on Nigeria’s fragile electricity value chain. When DisCos fail to bill and collect effectively, they struggle to remit payments to generation companies (GenCos) and the Nigerian Bulk Electricity Trading Company (NBET).
The result is mounting liquidity pressure, weaker investor confidence, and ongoing challenges in delivering reliable power to homes and businesses.
NERC has repeatedly warned that without better metering, lower aggregate technical, commercial and collection (ATC&C) losses, and stronger customer engagement, the sector’s financial stability will remain under threat.
The regulator continues to push initiatives such as the National Mass Metering Programme (NMMP), tighter enforcement of performance benchmarks, and possible sanctions for chronic underperformance.
While NERC recently reported that Nigeria’s electricity metering rate improved to 56.07% as of October 2025, the latest figures show that deep structural issues persist.
For now, billing inefficiencies continue to cost Nigeria’s electricity sector tens of billions of naira, limiting its ability to meet growing power demand and reduce reliance on government support.
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