Nigeria’s electricity providers billed over ₦761 billion in early 2025, but poor collection left a troubling ₦202 billion shortfall.
The revenue crisis has triggered regulatory action, with NERC introducing digital billing reforms to improve accountability across all distribution companies.
Despite implementing a massive 107% increase in electricity billing in early 2025, Nigeria’s electricity distribution companies (DisCos) are grappling with a staggering revenue shortfall of over ₦202 billion, according to the Nigerian Electricity Regulatory Commission (NERC).
In its latest report, NERC revealed that from January to March 2025, the 12 DisCos across Nigeria billed consumers a total of ₦761.91 billion. However, only ₦559.3 billion was recovered, translating to a revenue collection efficiency of 75.4% and leaving a deficit of ₦202.61 billion, a worrying trend for the struggling power sector.
The figures show a sharp increase compared to the same period in 2024, when DisCos billed ₦368.65 billion and collected ₦291.62 billion, resulting in a more modest shortfall of ₦77.03 billion and a better collection efficiency of 79.1%.
Despite higher billing, the worsening collection gap raises critical questions about the financial sustainability of Nigeria’s electricity distribution companies, especially amid increasing consumer dissatisfaction over poor service delivery.
Ikeja Electric leads billing, Yola DisCo trails
Ikeja Electric topped the chart as the DisCo with the highest billing, issuing ₦129.91 billion in invoices within the quarter. Out of this, it managed to collect ₦101.2 billion, resulting in a shortfall of ₦28.71 billion, or 22.1%.
Eko Electricity Distribution Company (EKEDC) followed closely, billing ₦123.76 billion but managing to collect just ₦61.73 billion, effectively losing 25.5% of its billed revenue.
Abuja DisCo recorded ₦109.73 billion in total billing and collected ₦88.1 billion, leaving an unpaid balance of ₦21.63 billion, or 19.7%. Ibadan DisCo billed ₦82.88 billion and also suffered a significant collection shortfall, retrieving only ₦61.73 billion.
Other notable figures include Benin DisCo, which billed ₦64.96 billion and collected ₦52.31 billion, and Enugu DisCo, which recovered ₦44.95 billion from a ₦55.56 billion billing total.
Struggling DisCos and widening revenue gaps
The poorest-performing DisCos in terms of collection were Jos, Kano, Kaduna, and Yola. Jos DisCo collected just ₦17.13 billion out of ₦36.31 billion billed, losing over 52% of its expected revenue. Kano DisCo recorded a 37.1% loss, collecting ₦25.5 billion out of ₦40.51 billion.
Kaduna DisCo recovered less than half of its billing, taking in only ₦11.72 billion from a ₦24.22 billion charge. Yola DisCo, with the lowest billing at ₦14.42 billion, collected ₦8.2 billion.
In contrast, Aba Power billed ₦17.65 billion and recovered ₦9.32 billion, while Abuja DisCo refunded ₦241.45 million to nearly 10,000 customers for overbilling, following a directive from NERC and a debit of ₦1.69 billion for violations.
NERC introduces new digital billing rules
To address systemic inefficiencies, NERC issued new rules on May 28, 2025, mandating DisCos to adopt a transparent, digital billing and collection system. The policy, signed by NERC chairman Sanusi Garba, is part of efforts under the Electricity Act 2023 to improve accountability and rebuild consumer trust.
Whether these reforms will curb Nigeria’s ongoing power sector challenges remains to be seen, but for now, the industry continues to balance rising billing figures with troubling shortfalls.
