Electricity Distribution Companies (DisCos) in Nigeria recorded a combined surplus of about ₦493.6 billion in the first nine months of 2025, even as consumers continued to face poor and inconsistent power supply, according to data from the Nigerian Electricity Regulatory Commission (NERC).
The regulator’s figures show that the DisCos collected roughly ₦1.69 trillion from electricity customers during the period but remitted only about ₦1.19 trillion to the electricity market.
Industry insiders say the surplus is largely due to a Federal Government policy allowing DisCos to remit less than 40 per cent of the electricity value taken from the national grid.
NERC reports for the first three quarters of 2025 indicate that DisCos were invoiced ₦1.249 trillion by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator. Despite the high collections, only ₦1.194 trillion was remitted, leaving about ₦55 billion unpaid.
Quarterly data reveals persistent surplus trends:
Q1 2025: Collected ₦553.63 billion; remitted ₦414.26 billion; surplus ₦139.37 billion.
Q2 2025: Collected ₦564.71 billion; remitted ₦399.20 billion; surplus ₦165.51 billion.
Q3 2025: Collected ₦570 billion; remitted ₦381.29 billion; surplus ₦188.71 billion.
Beyond financial issues, the regulator highlighted gaps in energy accountability. DisCos failed to account for over 4,100 gigawatt-hours (GWh) of electricity received from the national grid. Out of a total off-take of 23,342.38 GWh, only 19,240.28 GWh was properly accounted for, with the largest losses in the first quarter.
NERC explained that energy accounting efficiency measures how well electricity supplied to DisCos is billed to customers. While higher efficiency should improve revenue recovery, the regulator noted that Nigeria’s service-based tariff system and wide pricing differences across customer categories complicate the relationship.
Billing inefficiencies alone led to an estimated ₦505.57 billion in lost revenue during the period, according to the regulator.
Reacting to the report, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, described the situation as a paradox. He questioned how DisCos continue to post large surpluses while service quality remains poor. He added that only about 54 per cent of electricity consumers are currently metered, despite the billions collected annually by distribution companies.
Adegbemle stressed that surplus funds often disappear into opaque operating expenses and debt servicing rather than improving electricity supply, leaving Nigerians to bear the burden of unreliable power.
