Over 1.1m Nigerians exit discos as power costs rise

Electricity Distribution Companies (Discos) lost more than 1.13 million customers in 2025 as rising electricity costs and persistent supply challenges pushed many households and businesses away from the national grid.

The latest Nigeria Electricity Report released by the National Bureau of Statistics, using data from the Nigerian Electricity Regulatory Commission, showed that the number of registered electricity customers fell from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025, representing an 8.52 per cent decline.

Despite the drop in customer numbers, electricity distributors recorded stronger financial performance during the year. Revenue generated by the 11 Discos increased by 23.75 per cent to N630.93 billion in the fourth quarter of 2025, compared to N509.84 billion in the same period of the previous year. Total annual collections also rose from N1.69 trillion in 2024 to N2.32 trillion in 2025.

Electricity supply also improved slightly, with energy distributed rising by 6.76 per cent year-on-year to 6,627.56 gigawatt-hours.

The report also indicated continued progress in metering, as the number of customers with electricity meters increased to 6.97 million, while unmetered customers declined significantly. The proportion of customers on prepaid meters rose to over 57 per cent, reducing dependence on estimated billing.

Among the distribution companies, Benin Electricity Distribution Company recorded the largest customer loss, followed by Kaduna and Yola Discos. Ibadan, Port Harcourt, Kano, Eko and Jos also posted declines.

In contrast, Enugu Electricity Distribution Company recorded the highest customer growth during the period, while Abuja and Ikeja Discos also expanded their customer base.

The decline in electricity subscribers comes amid growing migration by consumers to alternative power sources as businesses and households seek more reliable electricity.

In recent months, several large industrial consumers, manufacturers and institutions have secured regulatory approvals to generate their own electricity outside the national grid, citing unstable supply and rising tariffs.

Listed companies also spent hundreds of billions of naira on diesel, gas and other alternative energy sources in the first quarter of 2026 as electricity costs continued to climb.

Despite the challenges, the Federal Government has maintained that ongoing reforms in the power sector will improve electricity supply, with the Minister of Power, Joseph Tegbe, expressing confidence that Nigerians will witness significant improvements before the end of the year.