DisCos supplied electricity worth N3.68trn  in 2025, says NERC

Nigerian Electricity Regulatory Commission’s (NERC) has revealed that Nigeria’s Electricity Distribution Companies (DisCos) supplied electricity worth N3.68 trillion in 2025 but billed customers N2.99 trillion.

NERC in its 2025 Annual Report revealed that DisCos left N669.49 billion in billed electricity charges uncollected from customers in 2025.

According to the regulator, of the amount billed, only N2.32 trillion was collected, representing a collection efficiency of 77.60per cent.

The figures mean DisCos failed to recover about N22.40 out of every N100 billed to electricity consumers during the year.

NERC said the N3.68 trillion worth of energy supplied translated to a gross billing efficiency of 81.14per cent, meaning electricity worth about N694.80 billion was supplied but not billed to customers.

The regulator said the combination of billing and collection inefficiencies continued to weaken the financial liquidity of the Nigerian Electricity Supply Industry (NESI), limiting its capacity to support new investments.

“The total billing to electricity consumers by the DisCos was N2,988.30 billion, but only N2,318.81 billion was collected, translating to a collection efficiency of 77.60per cent,” the regulator noted.

Despite the improvement in efficiency, the value of unpaid bills increased from N536.95 billion in 2024 to N669.49 billion in 2025, representing an increase of N132.54 billion, or 24.7per cent.

NERC also reported that the Nigerian Bulk Electricity Trading Plc (NBET) and Market Operator (MO) issued N1.72 trillion in gross invoices to DisCos in 2025 for energy costs and administrative services.

DisCos remitted N1.63 trillion, representing 94.80per cent of their obligations and leaving a market shortfall of N89.58 billion.

The regulator described the shortfall as an underpayment attributable to market participants.

The revenue challenges persist amid reforms introduced by the Electricity Act 2023, which President Bola Ahmed Tinubu signed into law in June 2023.

The Act replaced the Electric Power Sector Reform Act 2005 and removed electricity from the Exclusive Legislative List, enabling states and private entities to participate more directly in electricity generation, transmission and distribution.

The reform is designed to promote competition, attract investment and expand electricity access.

NERC has also introduced measures to strengthen consumer protection. The regulator previously directed DisCos to complete refunds under amended orders within 12 months, with the refunds applied directly to customers’ electricity bills.

The latest annual performance comes as NERC continues to monitor revenue collection across the distribution segment.

The regulator earlier reported that DisCos generated N196 billion in revenue in February 2026, underscoring the importance of stronger collection performance to the financial sustainability of the electricity market.

In October 2025, the Federal Government approved the disbursement of N28 billion to electricity distribution companies under the Meter Acquisition Fund (MAF) Tranche B scheme for the procurement and installation of prepaid meters.