Electricity Distribution Companies (DisCos) collected a total of N1.13 trillion from customers in the second and third quarters of 2025, reflecting a 4.63 percentage-point improvement in revenue collection efficiency.
Gatekeepers News reports that however, despite the gains, the Nigerian Electricity Regulatory Commission (NERC) says the sector recorded a combined revenue shortfall of N314.35 billion over the period, underscoring persistent liquidity challenges in the power industry.
According to NERC’s third-quarter (Q3) 2025 report, the 11 DisCos collected N570.25 billion out of N706.61 billion billed in Q3, translating to a collection efficiency of 80.70 per cent. This represents an improvement from Q2, when DisCos recovered N564.71 billion out of N742.34 billion billed, or 76.07 per cent efficiency.
At the aggregate level, NERC said the improvement reflects a 4.63 percentage-point increase in collection efficiency between Q2 and Q3, driven by operational adjustments and targeted revenue recovery efforts.
From April to June 2025, DisCos recovered N564.67 billion, comprising N197.08 billion in April, N188.70 billion in May and N178.89 billion in June. Collections rose slightly in Q3 to N570.28 billion, with N190.52 billion in July, N187.47 billion in August and N192.29 billion in September. September emerged as the strongest month in the six-month period, signalling a degree of stabilisation.
Performance across the DisCos varied widely. Ikeja DisCo recorded the highest collection efficiency at 100 per cent in Q3, followed by Eko with 88.74 per cent, Benin with 86.44 per cent and Abuja with 81.60 per cent. Kaduna DisCo recorded the lowest efficiency at 45.67 per cent.
Quarter-on-quarter analysis showed that seven DisCos improved their efficiency, led by Ikeja (+17.58pp), Port Harcourt (+8.83pp), Yola (+8.72pp), Abuja (+5.24pp), Jos (+4.90pp), Eko (+0.94pp) and Benin (+0.89pp). In contrast, four DisCos posted declines, with Kaduna (-2.70pp) and Ibadan (-1.34pp) recording the sharpest drops.
NERC noted that DisCos such as Ikeja and Eko benefited from legacy recoveries and intensified revenue drives, while several northern and mid-sized DisCos continued to lag due to infrastructure gaps, energy theft and billing inefficiencies.
Despite improved efficiency, the regulator said the combined revenue shortfall for Q2 and Q3 stood at N314.35 billion, comprising N177.68 billion in Q2 and N136.34 billion in Q3.
The uncollected revenue, NERC said, highlights ongoing liquidity constraints in the sector, limiting DisCos’ capacity to invest in network expansion and maintenance.
While acknowledging the gains recorded in Q3, the commission stressed that structural issues continue to undermine performance, including technical and commercial losses and inadequate metering. Aggregate Technical, Commercial and Collection (ATC&C) losses in Q3 stood at 33.27 per cent, exceeding the allowable target of 20.54 per cent under the Multi-Year Tariff Order (MYTO) 2025.
NERC emphasised that improved metering remains the most effective tool for boosting revenue recovery and reducing losses. It said:
“The most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters.”
The commission disclosed that it issued an order in Q2 2024 for the operationalisation of Tranche A of the Meter Acquisition Fund (MAF), directing DisCos to deploy the first tranche of funds to procure and install meters for unmetered Band A customers.
However, NERC lamented that more than five million electricity customers nationwide remain unmetered, leaving them reliant on estimated billing by DisCos.
