Nigeria’s electricity Distribution Companies (DisCos) failed to collect N669.49 billion in billed electricity charges from customers in 2025, highlighting persistent revenue challenges in the power sector.
The figure is contained in the 2025 Annual Report of the Nigerian Electricity Regulatory Commission (NERC).
According to the report, DisCos supplied electricity worth N3.68 trillion during the year and billed customers N2.99 trillion. However, only N2.32 trillion of the billed amount was collected.
This translated to a collection efficiency of 77.60%, meaning DisCos failed to recover about N22.40 for every N100 billed to electricity consumers.
NERC said the sector also recorded significant billing inefficiencies during the period, with the N3.68 trillion worth of electricity supplied translating to a gross billing efficiency of 81.14%.
The regulator estimated that electricity worth about N694.80 billion was supplied but not billed to customers.
NERC said the combination of billing and collection inefficiencies continued to undermine the liquidity of the Nigerian Electricity Supply Industry (NESI), limiting its capacity to support new investments.
“The total billing to electricity consumers by the DisCos was N2,988.30 billion, but only N2,318.81 billion was collected, translating to a collection efficiency of 77.60%,” the regulator stated.
Despite the reported improvement in collection efficiency, the value of unpaid electricity bills rose by N132.54 billion, or 24.7%, from N536.95 billion in 2024 to N669.49 billion in 2025.
The report also showed that the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator issued N1.72 trillion in gross invoices to DisCos in 2025 for energy costs and administrative services.
DisCos remitted N1.63 trillion, representing 94.80% of their obligations, leaving a market shortfall of N89.58 billion.
NERC described the outstanding amount as an underpayment attributable to market participants.
The revenue challenges come amid ongoing reforms in the electricity sector under the Electricity Act 2023, which was signed into law by President Bola Tinubu in June 2023.
The Act repealed the Electric Power Sector Reform Act 2005 and removed electricity from the Exclusive Legislative List, allowing states and private entities to participate more directly in electricity generation, transmission and distribution.
The reforms are aimed at promoting competition, attracting investment and expanding access to electricity.
Meanwhile, NERC has continued to introduce measures to strengthen consumer protection and improve accountability within the sector, including directives requiring DisCos to complete refunds under amended orders within 12 months, with the refunds applied directly to customers’ electricity bills.
The regulator also reported that DisCos generated N196 billion in revenue in February 2026, underscoring the importance of improved revenue collection to the financial sustainability of Nigeria’s electricity market.
In October 2025, the Federal Government approved N28 billion under Tranche B of the Meter Acquisition Fund for the procurement and installation of prepaid meters, as part of efforts to address Nigeria’s poor metering coverage and improve revenue collection.
Boluwatife Enome
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