Nigeria’s electricity distribution companies (DisCos) recorded an estimated N44.27 billion revenue loss in the latest reporting period due to persistent gaps in billing and revenue collection, highlighting ongoing weaknesses in the power sector.
This is according to data contained in the latest Nigerian Electricity Regulatory Commission (NERC) Commercial Performance Factsheet.
The figures show that despite receiving electricity worth over N300 billion from the national grid, DisCos were unable to fully bill and collect from end-users, reinforcing concerns about efficiency and sustainability in Nigeria’s electricity value chain.
What the data is saying
According to the NERC Factsheet, DisCos received electricity valued at N303.85 billion during the period under review, but only billed customers N255.19 billion.
This translates to an industry-wide billing efficiency of 83.9%, implying that electricity worth about N48.66 billion was delivered but never billed.
Revenue collection performance was weaker. Out of the N255.19 billion billed, DisCos collected just N210.92 billion, leaving a revenue gap of approximately N44.27 billion.
NERC summarised the performance as follows: “Energy billed and billing efficiency: N303.85 billion (total energy received) and N255.19 billion (total energy billed); billing efficiency: 83.9%. Revenue collection and collection efficiency: total billing N255.19 billion, total revenue collected N210.92 billion.”
The data reveals wide disparities in billing efficiency among the country’s 11 DisCos, pointing to uneven operational capacity and structural challenges.
Kano DisCo recorded the highest billing efficiency at 98.05%, suggesting strong customer enumeration and billing controls. Eko DisCo followed with 95.71%, while Ikeja DisCo posted 94.36%, reflecting relatively stronger performance in Lagos’ electricity market.
Jos DisCo achieved a billing efficiency of 84.89%, Kaduna DisCo 84.62%, and Abuja DisCo 84.05%, all slightly above the national average.
However, several DisCos performed significantly below acceptable levels. Enugu DisCo recorded 80.23%, Port Harcourt DisCo 80.32%, Ibadan DisCo 73.51%, Yola DisCo 66.03%, while Benin DisCo posted the lowest billing efficiency at 65.32%.
Why this matter
The combined billing and revenue collection inefficiencies continue to strain Nigeria’s already fragile electricity value chain. When DisCos fail to bill and collect effectively, they are unable to make full remittances to the Nigerian Bulk Electricity Trading Company (NBET) and generation companies (GenCos), deepening liquidity challenges across the sector.
These weaknesses ultimately affect electricity supply, investment confidence, and the ability of the sector to deliver reliable power to consumers, while increasing dependence on government support and subsidies.
What you should know
NERC has consistently warned that without significant improvements in metering coverage, reductions in aggregate technical, commercial and collection (ATC&C) losses, and stronger customer engagement, the sector’s financial health will remain at risk.
The regulator has linked improved outcomes to initiatives such as the National Mass Metering Programme (NMMP), stricter enforcement of performance targets, and possible sanctions for persistent underperformance.
Despite these measures, the latest data underscores that Nigeria’s power distribution segment still faces deep-rooted efficiency challenges—costing the sector tens of billions of naira and limiting its capacity to meet the country’s electricity needs.
Earlier, NERC reported that the national electricity metering rate had risen to 56.07% as of October 2025.
