Nigeria’s electricity distribution companies recorded a major jump in earnings this year, collecting about N1.5tn between January and August 2025, according to new figures released by the Nigerian Electricity Regulatory Commission.
The latest commercial performance report shows that revenue collection rose by roughly 43% compared with the same period last year, when the utilities gathered around N1.05tn. The commission links the growth to tighter monitoring, improved billing systems, and stronger enforcement of tariff payments.
From January to March, the 12 DisCos pulled in N553.63bn, followed by N564.71bn in the second quarter. Collections for July and August stood at N193.96bn and N191.11bn respectively.
The regulator noted that collection efficiency climbed to 80% in August, signaling gradual progress for a sector long weakened by liquidity gaps, low metering coverage, and revenue leakages.
Eko Electricity Distribution Company ranked highest in performance for the month, remitting N33.4bn, while Ikeja Electric maintained the strongest efficiency rate at over 100% due to legacy billing adjustments. Other major DisCos such as Abuja, Ibadan, Port Harcourt, Benin and Enugu also posted modest improvements.
However, Jos and Kaduna DisCos were at the bottom of the chart, recording efficiency levels of about 50% and 52% respectively.
Despite the gains, NERC cautioned that the industry still struggles with billing accuracy and energy accounting, with the national billing efficiency at 83.85%, below global standards.
At a recent industry conference, stakeholders criticised the distribution companies for not investing enough in essential infrastructure. Some argued that consumers often end up funding equipment such as transformers and poles, even though these assets are later taken over by the DisCos.
Concerns were also raised about the slow pace of refunds and allegations that some free meters were sold to customers.
The regulator projects that if the current trend continues, total collections for 2025 could exceed N2.2tn — a potential boost for the electricity market as broader grid reforms and digital metering efforts continue.
