Electricity distribution companies in Nigeria generated a combined revenue of about N2.33tn in 2025, despite persistent complaints from consumers over erratic power supply, estimated billing and frequent outages.
An analysis of monthly revenue data released by the Nigerian Electricity Regulatory Commission showed that the country’s 12 power distribution companies, commonly known as DisCos, collected N2.325tn from electricity customers during the year.
The figure represents a significant increase compared to the about N1.8tn generated in 2024, reflecting a rise of roughly N525bn or about 29 per cent year-on-year.
The surge in revenue occurred even as many electricity consumers across Nigeria continued to express frustration over unreliable power supply and rising tariffs under the country’s partially deregulated electricity market.
According to the regulator, the DisCos recorded a combined revenue of N553.63bn in the first quarter of 2025. Collections rose slightly in the second quarter to N564.71bn, driven largely by stronger billing enforcement and tariff adjustments.
Monthly figures for the second half of the year also showed consistently high collections. In July 2025, the companies generated N193.96bn, which dipped slightly to N191.11bn in August.
Revenue later rebounded to N196.26bn in September before climbing further to N210bn in October. Collections fell marginally to N208.78bn in November and declined again to N207bn in December.
Overall, monthly payments by electricity consumers remained between N190bn and N210bn throughout the second half of the year.
The commission also noted that billing dropped by four per cent in December compared with the N269.43bn billed in November. However, collection efficiency improved slightly, rising to 80.22 per cent in December from 77.49 per cent in the previous month.
According to NERC, the total value of electricity energy received by the DisCos in December stood at N309.65bn, representing a 9.54 per cent decline from N342.29bn recorded in November.
Among the distribution companies, Eko Electricity Distribution Company recorded the highest revenue recovery rate at 99.45 per cent, reflecting near-full recovery of its allowable revenues.
Other companies that posted strong recovery performance included Yola Electricity Distribution Company with 87.89 per cent, Ikeja Electricity Distribution Company with 85.32 per cent and Abuja Electricity Distribution Company with 84.43 per cent.
Meanwhile, Benin Electricity Distribution Company, Ibadan Electricity Distribution Company, Enugu Electricity Distribution Company and Port Harcourt Electricity Distribution Company recorded moderate revenue recovery levels.
The regulator said the figures highlight how efficiently the companies are billing and collecting revenue, which is considered critical for improving liquidity in the Nigerian Electricity Supply Industry.
Despite the rising revenue, the performance of the distribution companies has continued to draw criticism from consumers and advocacy groups who complain about unreliable electricity supply, frequent feeder outages and disputes over estimated billing.
Consumer groups have also accused some distribution companies of prioritising revenue collection without making sufficient investments in network upgrades and metering infrastructure.
Under Nigeria’s electricity market structure, DisCos are responsible for distributing power from the national grid to homes and businesses and collecting payments from consumers.
Analysts attribute the increase in revenue partly to tariff adjustments introduced in recent years, particularly the implementation of cost-reflective tariffs for some customer categories.
The reforms were designed to improve liquidity in the power sector, which has long struggled with funding challenges affecting generation, transmission and distribution investments.
However, critics argue that the tariff increases have not resulted in noticeable improvements in electricity supply.
Nigeria’s power sector has continued to face structural challenges since the privatisation of the industry in 2013. While private investors took over the distribution companies, the sector still grapples with infrastructure deficits, technical losses, poor metering coverage and persistent liquidity constraints.
Electricity generation in the country typically fluctuates between 3,000 megawatts and 5,000 megawatts, far below the estimated national demand of over 20,000 megawatts.
Frequent national grid disturbances, gas supply shortages to power plants and ageing transmission infrastructure have further affected the sector’s performance.
Energy experts say that unless improvements occur simultaneously in generation, transmission and distribution networks, rising revenue collections alone may not translate into better electricity supply for Nigerians.
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