NERC said electricity worth approximately N694.8 billion was supplied but not billed to customers. Gross billing efficiency stood at 81.14%, meaning a significant portion of energy entering the distribution network did not translate into customer invoices.
The figures expose two major weaknesses: electricity that is delivered but not billed, and electricity that is billed but not paid for.
Both reduce the cash available to keep the electricity market functioning and invest in infrastructure.
The financial strain extends beyond customer collections. NERC reported that the Nigerian Bulk Electricity Trading Plc and the Market Operator issued N1.72 trillion in gross invoices to DisCos in 2025 for energy and market-related services.
DisCos remitted N1.63 trillion, equivalent to 94.8% of their obligations, leaving a shortfall of N89.58 billion.
Persistent payment gaps can weaken the ability of DisCos to meet obligations to generators and other participants in the electricity value chain, increasing the sector’s dependence on government-backed interventions.
NERC has continued to push metering as a way to reduce disputes arising from estimated billing. Accurate meters can give consumers greater confidence that they are paying for electricity actually consumed, while helping DisCos improve billing accuracy.
However, widespread metering remains a major challenge. Customers who receive disputed or estimated bills may be less willing to pay, further widening the commercial gap.
The problem comes as Nigeria implements reforms under the Electricity Act 2023, which opened greater opportunities for states and private investors to participate in electricity generation and distribution.
Ultimately, the sector’s ability to attract fresh capital will depend heavily on whether electricity companies can turn power supplied into reliable cash collections. Without stronger billing, metering and payment systems, revenue leakages could continue to constrain investment in transformers, substations, distribution lines and other infrastructure needed to improve electricity supply.
