Nigeria achieved a significant milestone in its electricity sector during the first quarter of 2025, with the national grid operating without a single collapse or major disturbance.
This marked improvement in grid stability, credited by the Nigerian Electricity Regulatory Commission (NERC) to enhanced management by the System Operator, contrasts sharply with the 12 grid failures recorded throughout 2024 that caused nationwide blackouts.
However, the NERC’s latest quarterly report reveals this stability coexists with substantial operational and financial challenges. While the grid avoided collapse, average daily system frequency oscillated between 49.28Hz and 50.77Hz, remaining within emergency stress limits (48.75Hz – 51.25Hz) but consistently outside the optimal operating range (49.75Hz – 50.25Hz).
Similarly, average daily system voltages frequently fell outside Grid Code specifications, indicating underlying operational vulnerabilities.
Financially, the eleven electricity distribution companies (Discos) showed improved remittance compliance, paying N414.26 billion (95.86%) of the N432.13 billion invoiced by the Nigerian Bulk Electricity Trading Company (NBET) and the Market Operator (MO). This represents a rise from 92.68% in Q4 2024.
Despite this, their ability to collect revenue from customers deteriorated sharply. Discos collected only N553.63 billion out of N744.27 billion billed, resulting in a collection efficiency of 74.39% – a 3.05 percentage point drop – and contributing to a soaring Aggregate Technical, Commercial, and Collection (ATC&C) loss of 39.61%, far exceeding the 2025 target of 20.54% and causing an estimated N200.495 billion revenue loss. Kaduna Electric recorded the worst performance with 68.57% losses.
Metering progress remained sluggish, with only 187,194 new meters installed (a marginal 0.41% increase), raising the national metering rate to just 46.98%.
The Meter Asset Provider (MAP) scheme dominated installations (148,713 units). Customer service was another critical failing, as Discos resolved only 37.27% (1,554) of the 4,169 complaints escalated to NERC’s Consumer Complaints Unit.
Overall, Discos received 254,404 complaints, primarily concerning metering, billing, and service interruptions.
International customers performed poorly, remitting only 33.70% ($5.8 million) of their $17.24 million invoices. Domestic bilateral customers fared better at 72.24%. Tragically, the sector reported 31 accidents in Q1, resulting in 14 injuries and 12 fatalities, prompting NERC investigations and pledges for stricter safety enforcement.
The commission issued 40 regulatory orders and granted 55 licenses during the quarter, emphasizing its commitment to enforcing compliance and improving service delivery despite the persistent hurdles beyond grid stability.
