Electricity distribution companies (DisCos) across Nigeria recorded a revenue shortfall of about ₦44bn in October 2025 after failing to fully recover money billed to customers for power supplied, according to the Nigerian Electricity Regulatory Commission (NERC).
NERC’s latest commercial performance report showed that the 11 DisCos billed customers a total of ₦255.19bn during the month but were only able to collect ₦210.92bn. The gap added to the sector’s liquidity challenges, which are worsened by unbilled energy and unpaid electricity bills.
The report revealed that DisCos received electricity valued at ₦303.85bn from the national grid in October, representing an increase of 8.73 per cent compared with September. However, only ₦255.19bn of this supply was billed to customers, leaving about ₦48.66bn worth of electricity unbilled. As a result, industry-wide billing efficiency dropped to 83.99 per cent, meaning more than 16 per cent of power delivered was not captured in customer bills.
Despite weak billing performance, revenue collection improved slightly. Total collections rose by 7.48 per cent month-on-month, pushing collection efficiency to 82.66 per cent. NERC explained that some DisCos recorded collection efficiency above 100 per cent due to the recovery of outstanding debts from previous months.
Even with this improvement, the sector continued to record major losses. DisCos failed to collect ₦44.27bn of the amount billed in October, while overall recovery efficiency stood at 82.49 per cent, reflecting the portion of allowed revenue actually realised by operators.
The regulator also noted a growing gap between approved tariffs and actual revenue. While the allowed average tariff for October was ₦116.25 per kilowatt-hour, DisCos collected an average of about ₦95.85/kWh, deepening liquidity pressure across the electricity value chain and affecting remittances to market participants, including the Nigerian Bulk Electricity Trading Plc.
Performance varied widely among the DisCos. Ikeja and Eko DisCos emerged as the strongest performers, posting high billing and collection efficiencies, with Ikeja recording collections that exceeded its billings due to arrears recovery. Abuja and Port Harcourt DisCos showed moderate performance, while several northern utilities continued to struggle with low collections.
Jos DisCo recorded the weakest performance, collecting less than 40 per cent of its billed revenue. Kaduna, Kano, Benin and Yola DisCos also posted weak recovery levels, highlighting persistent commercial inefficiencies across parts of the market.
NERC said the October figures underscore the need for improved metering, reduced energy theft, accurate customer enumeration and stricter enforcement of performance benchmarks.
According to the commission, unless these issues are addressed, revenue losses will continue to undermine the financial stability of Nigeria’s power sector despite ongoing reforms.
