Total revenue generated by Nigeria’s 11 electricity distribution companies (DisCos) experienced a marginal decline in late 2025, slipping to N207.49 billion in December from the N208.78 billion recorded in November. According to the latest factsheet from the Nigerian Electricity Regulatory Commission (NERC), this performance highlights a complex landscape of improving technical efficiencies set against persistent liquidity challenges within the Nigeria Electricity Supply Industry (NESI).
The structural and financial consequence of the December operations saw DisCos achieve a collection efficiency of 80.22%. While the total energy billed to customers reached N258.66 billion, the DisCos received energy valued at N309.65 billion. This resulted in a billing efficiency of 83.53%, marking a notable 4.82 percentage point improvement from the preceding month. This upward trend suggests that DisCos are becoming more effective at accounting for the energy delivered to their networks, even if total revenue collections dipped slightly.
Analytically, the report points to a significant boost in revenue recovery metrics. The actual average collection rose to N98.97 per kWh, representing a 9.85% increase. Recovery efficiency also climbed to 79.62%, up 7.14 percentage points from November. Despite these gains, a substantial “tariff gap” remains; the amount actually collected per kilowatt-hour still trails the allowed average tariff of N124.30/kWh, indicating that the sector is still struggling to achieve full cost recovery.
The impact on “Regional Performance and Liquidity” varies significantly across the country. NERC data identified Eko DisCo as the national leader in revenue recovery, achieving a near-perfect rate of 99.45%. Other top performers included Yola (87.89%), Ikeja (85.32%), and Abuja (84.43%). Conversely, DisCos in Benin, Ibadan, Enugu, and Port Harcourt reported more moderate recovery levels, ranging between 71% and 79%. These regional disparities remain a key indicator of where liquidity bottlenecks are most acute.
Furthermore, NERC emphasized that these billing and collection figures are vital health markers for the industry. Higher recovery rates are essential for strengthening the liquidity of the value chain, ensuring that GenCos and gas suppliers are paid, and ultimately improving service delivery to end-users. The steady increase in recovery efficiency, despite the slight dip in total gross revenue, suggests that the industry is slowly stabilizing its internal financial processes.
The long-term outlook for the NESI depends on closing the gap between the allowed tariff and actual collections. As DisCos continue to deploy meters and refine their billing technologies, the focus remains on pushing recovery levels toward the 100% mark achieved by Eko DisCo. For the Nigerian consumer, these efficiencies are the primary pathway toward a more reliable power supply and a more transparent billing environment.
