Electricity distribution companies (DisCos) in Nigeria generated N570.25 billion in revenue in the third quarter of 2025, reflecting improved billing and collection efficiency across the power sector.
This is according to information contained in the Nigerian Electricity Regulatory Commission’s (NERC) Third Quarter 2025 report.
The figures show that while revenue performance improved compared to the previous quarter, significant collection gaps and structural challenges remain within the Nigerian Electricity Supply Industry (NESI).
What the report is saying
NERC disclosed that DisCos billed a total of N706.61 billion to electricity consumers nationwide during the period, out of which N570.25 billion was successfully collected. This translates to a collection efficiency of 80.70%, representing a 4.63 percentage-point improvement from the 76.07% recorded in the second quarter of 2025.
“The total revenue collected by all DisCos in 2025/Q3 was N570.25 billion out of N706.61 billion billed to customers. This translates to a collection efficiency of 80.70%, representing an increase of 4.63pp compared to 2025/Q2 (76.07%),” the report said.
According to NERC, the improved collection efficiency in Q3 2025 was largely driven by enhanced revenue assurance measures, expanded metering efforts, and stronger enforcement of payment discipline across customer categories.
The regulator also pointed to incremental gains in customer enumeration and improved billing accuracy, particularly among metered customers.
Despite these gains, DisCos were unable to collect about N136.36 billion of the total amount billed during the quarter.
NERC noted that this uncollected revenue continues to pose a major challenge to the sector’s financial health.
Why this matters
Improved revenue collection by DisCos is critical to stabilising Nigeria’s electricity value chain, as market liquidity determines the ability of operators to maintain infrastructure, expand capacity, and deliver reliable power.
While the Q3 2025 figures signal gradual progress, the persistent revenue gap highlights the need for deeper structural reforms to ensure long-term sustainability.
What you should know
NERC has consistently emphasised metering as a key solution to revenue leakages and consumer disputes in the power sector.
Revenue shortfalls in the distribution segment often cascade across the value chain, affecting power generation and transmission.
The regulator reaffirmed its commitment to enforcing market rules, strengthening regulatory oversight, and supporting reforms aimed at improving efficiency, transparency, and service delivery across the electricity distribution segment.
DisCos recorded a significant improvement in their revenue collection in the second quarter of 2025, with total earnings reaching N564.71 billion.
The figure represents a 1.68 percentage point rise in collection efficiency compared to the previous quarter.
