In the second quarter of 2025, Nigeria’s electricity distribution companies (DisCos) billed their customers a total of ₦742.34 billion, but only ₦564.71 billion was collected, according to the Nigerian Electricity Regulatory Commission (NERC). This translates to a collection efficiency of just 76.07%, a modest improvement from the 74.39% recorded in Q1.
NERC highlighted that Eko DisCo led all operators with the highest collection rate at 87.80%, while Jos DisCo lagged significantly behind with only 43.82%. Several other DisCos also saw quarterly improvements: Port Harcourt (+9.79 percentage points), Benin (+5.04pp), Ikeja (+4.89pp), Ibadan (+4.20pp), and Yola (+0.88pp). However, Abuja and Jos DisCos were among those whose performance declined, dropping by –3.93pp and –3.37pp respectively.
Despite the revenue inflow, the sector still suffers big losses. NERC’s report points to an Aggregate Technical, Commercial, and Collection (ATC&C) loss rate of 37.92%, made up of 18.39% technical/commercial loss and 23.93% collection loss. Those losses are far above the 2025 regulatory target of 20.54%, costing DisCos a cumulative ₦158.05 billion in revenue.
On the billing side, the total naira value of energy taken by DisCos (“offtake”) was ₦909.59 billion, yet only ₦742.34 billion was translated into customer bills, meaning about ₦167.25 billion, or roughly 18% of supplied energy remains unbilled.
Meanwhile, DisCos remitted ₦399.20 billion upstream to the electricity market during the quarter, a 27.9% drop from previous levels. NERC said that of this, ₦333.90 billion went to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦65.30 billion to the Market Operator, but ₦18.15 billion remained outstanding.
The weak collection efficiency and high ATC&C losses undermine the financial stability of the power sector, limiting DisCos’ capacity to pay for generation and transmission. This liquidity squeeze can deter investment, raise cost-reflective tariffs, and ultimately slow economic growth by undermining reliable electricity supply and raising the cost of doing business.
