Despite persistent nationwide power outages, electricity Distribution Companies (DisCos) have recorded a significant rise in revenue — a development that has sparked a sharp disagreement between the Nigerian Electricity Regulatory Commission (NERC) and industry experts.
While NERC attributes the revenue surge to improved billing and collection efficiency, experts argue that the growth is largely driven by overbilling and exploitation of customers, many of whom continue to pay for electricity they do not consume.
DisCos Record N1.7trn in Nine Months
According to NERC’s latest Commercial Performance Report, DisCos generated N1.713 trillion between January and September 2025, marking a 27% increase from N1.249 trillion recorded in the same period of 2024.
The monthly breakdown shows that in September 2025 alone, DisCos collected N196.26 billion out of N241.54 billion billed — leaving N49.28 billion unpaid.
Quarterly revenue also showed consistent growth:
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Q1 2025: N559.3 billion
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Q2 2025: N573.5 billion
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Q3 2025: N581.3 billion
NERC: Efficiency Is Improving
NERC maintains that the revenue increase is the result of improved billing and collection systems. Key indicators from the report show:
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Billing efficiency: 86.43%
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Collection efficiency: 81.25%
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Revenue recovery efficiency: 83.45%
The Commission noted that DisCos such as Eko, Abuja, and Ikeja Electric remain top performers in billing and recovery.
Aba DisCo recorded an unusual 102.85% billing efficiency, which NERC says reflects improved energy optimisation and recovery of legacy debts.
Benin, Port Harcourt, and Kano DisCos posted moderate performance levels, while Jos, Kaduna, and Yola lagged behind.
According to NERC, “The figures provide a clear picture of how effectively DisCos are billing, collecting, and recovering revenue — essential for strengthening liquidity and improving service delivery across the Nigerian Electricity Supply Industry (NESI).”
Experts Disagree: “Consumers Are Paying for Power They Don’t Get”
Several industry experts have rejected NERC’s position, insisting that the rising revenue is not a product of efficiency but an outcome of systemic flaws that burden customers.
“Nigeria’s pricing structure is the real problem” — Prof. Wumi Iledare
Energy Economist Prof. Wumi Iledare argued that the country’s electricity pricing framework is fundamentally flawed.
According to him:
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Estimated billing remains abusive and unfair
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Cross-subsidies force low-income consumers to pay more
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Band pricing has created more distortions than solutions
He said:
“The anomaly in Nigeria’s electricity pricing structure is driving revenue — not efficiency, not service delivery, and certainly not fairness.”
“NERC is failing in its duty” — Power sector operator
A power sector operator who spoke anonymously accused NERC of failing to protect consumers.
“NERC has the yam and the knife. For over 12 years, the regulator has refused to do the needful, causing harm across the power sector value chain.”
Subsidy burden worsening — PowerUp Nigeria
Executive Director of PowerUp Nigeria, Adetayo Adegbemle, said the country’s electricity subsidy has become unsustainable, placing severe pressure on government finances.
He explained that the historic gap between cost-reflective tariffs and the actual tariffs paid by consumers is the reason subsidy exists, describing it as an “elephant in the China shop.”
He noted that subsidy was originally meant to:
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Support low-income consumers
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Maintain economic stability
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Prevent political unrest
Adegbemle added that the federal government began phasing out subsidy in 2020 through the Service-Based Tariff (SBT) due to its growing financial burden and the inefficiencies it created in the sector.
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