Electricity distribution companies (DisCos) across Nigeria billed customers a total of N255.19bn for power supplied in October 2025 but managed to collect only N210.92bn, leaving significant revenue shortfalls that continue to strain the liquidity of the country’s power sector.
This was disclosed in the latest commercial performance factsheet released by the Nigerian Electricity Regulatory Commission (NERC).
According to the report, the 11 DisCos received electricity valued at N303.85bn from the national grid in October—an increase of 8.73 per cent compared to September. However, the value of energy billed fell by 5.65 per cent to N255.19bn, creating a gap of N48.66bn in unbilled energy for the month.
As a result, industry-wide billing efficiency dropped to 83.99 per cent, down 2.45 percentage points from September, meaning more than 16 per cent of electricity supplied was not captured in customer bills.
While billing performance weakened, revenue collection showed modest improvement. Total collections rose by 7.48 per cent to N210.92bn, lifting collection efficiency to 82.66 per cent, up from 81.26 per cent in September. NERC explained that collection levels above 100 per cent in some DisCos were driven largely by the recovery of outstanding debts from previous months.
Despite this improvement, losses persisted. DisCos failed to collect N44.27bn of the amount billed in October, compounding losses from unbilled energy. Overall recovery efficiency—the proportion of allowed revenue actually realised—stood at 82.49 per cent.
The report also showed that although the allowed average tariff for October was N116.25 per kilowatt-hour, actual average collection dropped to about N95.85/kWh, widening the gap between regulated tariffs and realised revenue. This imbalance continues to fuel liquidity pressures across the electricity value chain, affecting remittances to the Nigerian Bulk Electricity Trading Plc and other market participants.
DisCo Performance Breakdown
Ikeja Electric emerged as the strongest performer, billing N41.26bn out of N43.72bn worth of energy received, achieving a billing efficiency of 94.36 per cent. It collected N42.11bn, pushing collection efficiency to 102.07 per cent and recovery efficiency to 108.17 per cent.
Eko DisCo also posted strong results, billing 95.71 per cent of energy received and collecting 93.50 per cent of its billings, with recovery efficiency at 101.65 per cent.
Abuja DisCo billed N38.93bn out of N46.32bn received, recording a billing efficiency of 84.05 per cent. It collected N34.39bn, with recovery efficiency at 88.30 per cent.
Port Harcourt DisCo billed 80.32 per cent of energy received and improved collection efficiency to 87.07 per cent, while recovery efficiency stood at 82.97 per cent.
In contrast, several DisCos—mostly in the northern region—continued to struggle. Jos DisCo recorded the weakest performance, collecting just N5.26bn out of N13.50bn billed, leaving collection efficiency at 38.98 per cent and recovery efficiency at 42.28 per cent.
Kaduna DisCo improved its billing efficiency to 84.62 per cent but recorded weak collections at 43.03 per cent. Enugu DisCo saw billing efficiency fall to 80.23 per cent, while recovery efficiency dropped to 77.67 per cent.
Ibadan DisCo recorded one of the strongest improvements in collections, with collection efficiency rising to 84.49 per cent, though billing efficiency dipped slightly to 73.51 per cent.
Meanwhile, Benin, Yola, and Kano DisCos remained in the amber zone. Kano posted one of the highest billing efficiencies at 98.05 per cent but collected only 58.67 per cent of its billings, highlighting persistent challenges in revenue recovery.
NERC said the October performance underscores the urgent need for improved metering, reduced energy theft, accurate customer enumeration, and stricter enforcement of commercial performance benchmarks.
Despite recent tariff adjustments and reforms under the amended Electricity Act, the regulator warned that unresolved gaps in energy accounting and revenue protection continue to drain billions of naira monthly from the sector, raising concerns over the sustainability of Nigeria’s power market reforms.