Nigeria’s electricity distribution companies, or DisCos, saw measurable improvements in the third quarter of 2025, with revenue collection efficiency rising to 80.7%.
According to the latest report from the Nigerian Electricity Regulatory Commission (NERC), the DisCos collected ₦570.21 billion from the ₦706.61 billion they billed customers between July and September.
Despite these gains, the Federal Government still had to pay ₦458.75 billion in subsidies during the same period to keep the sector afloat.
The continued need for massive subsidies stems from tariffs for most customers being frozen at July 2024 levels, which don’t cover the rising cost of generating power. This subsidy covered nearly 59% of the total invoices from power generation companies.
While some DisCos showed significant progress—with Ikeja Disco hitting 100% collection efficiency—others struggled, like Kaduna Disco, which had the lowest rate at just 45.67%.
The report also highlighted poor payment rates from international customers, who remitted only 38% of their bills, and noted that overall recovery in the sector is still hampered by inadequate metering, customer dissatisfaction, and an unwillingness to pay.
