Nigeria’s power sector recorded a notable improvement in commercial performance in September 2025, as the Nigerian Electricity Regulatory Commission (NERC) reported that electricity Distribution Companies (DisCos) achieved 86% billing efficiency for the month.
This is according to the latest Commercial Performance Factsheet released by NERC.
The report provides a detailed snapshot of how DisCos managed energy billing, cash collection, and overall financial efficiency, key indicators that shape liquidity and service delivery across the Nigerian Electricity Supply Industry (NESI).
The data shows that, in September, DisCos received energy valued at N279.45 billion, out of which N241.54 billion was successfully billed to customers.
This translated to a billing efficiency of 86.43%, representing an improvement of 2.58% compared to August.
NERC noted that this upward movement reflects improved metering penetration, better energy accounting, and more aggressive billing verification practices adopted by top-performing DisCos.
Collections improve as DisCos recover more revenue
DisCos also recorded stronger cash recovery performance. Out of the N241.54 billion billed, the report shows, they collected N196.26 billion, marking a 2.69% increase compared to the previous month.
This pushed collection efficiency to 81.25%, up by 1.18%, indicating that more customers are paying their electricity bills promptly — a trend crucial for reducing the sector’s longstanding liquidity constraints.
Revenue recovery efficiency climbs
The factsheet further shows that with an approved average tariff of N116.34/kWh, the actual average collection stood at N97.09/kWh, leading to a revenue recovery efficiency of 83.45%.
This represents a 3.67% rise, underscoring DisCos’ increased effectiveness in converting billed energy into actual cash, despite lingering challenges around energy theft, meter bypass, poor infrastructure, and customer dissatisfaction.
Eko, Abuja, and Ikeja DisCos lead the table
The factsheet also ranked Eko, Ikeja, and Abuja DisCos among the top performers in metering coverage nationwide. However, NERC’s breakdown shows uneven performance across the 11 distribution companies:
- Eko, Abuja, and Ikeja DisCos continued to rank among the best performers, maintaining high billing and collection efficiency with strong administrative processes and customer service systems.
- Aba DisCo stood out with an impressive 102.85% billing efficiency, driven largely by improved energy optimisation and efforts to reconcile legacy energy receivables.
- Benin, Port Harcourt, and Kano DisCos delivered moderate performance levels but still lag behind the industry’s top tier.
- Jos, Kaduna, and Yola DisCos performed below the sector average, with persistent operational challenges, limited metering coverage, and high collection losses affecting their standings.
Why It Matters
These commercial performance indicators are vital for stabilising Nigeria’s power sector. Stronger billing, enhanced collections, and improved cash recovery translate to better liquidity for DisCos and the wider value chain — from generation to transmission.
With ongoing sector reforms and the transition to a service-reflective tariff structure, NERC’s data shows cautious but steady progress.
Sustaining these gains, analysts say, will depend on reducing commercial losses, scaling up prepaid metering, enforcing customer compliance, and strengthening stakeholder trust.
The September 2025 performance, however, indicates that DisCos are moving in the right direction — gradually improving efficiency in a sector long plagued by financial instability and operational bottlenecks.
What you should know
Earlier this month, NERC announced that the total number of active customers across all eleven DisCos increased from 11.89 million in July to 11.96 million in August 2025.
NERC stated that the improved metering figures reflect ongoing reforms and investments in customer management by DisCos, aimed at enhancing billing transparency and consumer trust.
