Electricity distribution companies (DisCos) in Nigeria have earned N1.7 trillion in the first nine months of 2025, even as millions of consumers continue to struggle with power outages.

According to the Nigerian Electricity Regulatory Commission (NERC), the revenue jump represents a 27% increase from the N1.25 trillion recorded in the same period last year. In September alone, DisCos collected N196.26 billion out of N241.54 billion billed, leaving about N49 billion in unpaid bills.

NERC says the increase reflects better billing and revenue collection, with billing efficiency at 86.43% and revenue collection at 81.25%. DisCos such as Eko, Abuja, and Ikeja Electric were top performers, while Aba even recorded 102.85% billing efficiency.

However, experts in the sector argue that the revenue growth is not due to improved service. Prof. Wumi Iledare, an energy economist, said that Nigeria’s pricing system unfairly burdens consumers, forcing them to pay for electricity they may not receive.

A power sector operator added that NERC has failed to hold DisCos accountable over the years, leaving consumers with little recourse.

Consumer advocacy groups also warn that electricity subsidies, intended to protect low-income households, are no longer sustainable. Adetayo Adegbemle, Executive Director of PowerUp Nigeria, explained that the Service-Based Tariff introduced in 2020 aimed to reduce subsidies but concerns remain over rising costs and unreliable supply.