Electricity distribution companies across Nigeria have recorded a significant revenue shortfall for October 2025, underlining persistent financial stress in the nation’s power sector and raising fresh concerns about long-term viability and service delivery. Latest data from the Nigerian Electricity Regulatory Commission’s (NERC) commercial performance factsheet shows that the 11 licensed DisCos collected just ₦210.92 billion from customers out of the ₦255.19 billion they billed for electricity usage last October, leaving a gap of ₦44.2 billion in projected revenue.
The shortfall reflects a continued struggle within the distribution segment to convert energy deliveries into cash flows that can sustain operations, pay for power procurement and network maintenance, and invest in system upgrades. DisCos received energy valued at ₦303.85 billion during the period but could only invoice about 84 percent of that amount, resulting in an 83.9 percent billing efficiency a measure of how much of the energy supplied to the network was successfully billed to end consumers.
Performance across the distribution companies varied sharply. Kano, Eko and Ikeja DisCos were among the best performers in October, posting high billing efficiencies of 98.05 percent, 95.71 percent and 94.36 percent respectively, indicating strong invoicing practices within their customer bases. In contrast, several other operators lagged substantially, with Benin, Yola and Ibadan DisCos showing billing figures in the mid-60s to low-70s range and Port Harcourt and Enugu also trailing the leaders.
The number of active power customers connected to the grid grew modestly in October, rising to about 12.07 million from 11.03 million in September, according to the report. However, only 6.77 million of these customers had functional meters, giving a national metering rate of about 56.07 percent. The lack of comprehensive metering continues to challenge accurate billing and revenue assurance efforts, often forcing DisCos to rely on estimated bills that are more difficult to collect.
Some operators have made progress on metering. Aba Power Distribution Company notably increased its metering rate to 78.20 percent in October from less than 70 percent in the previous month. Eko and Ikeja DisCos continued their strong metering performances with rates above 84 percent. But other networks, including those in Enugu, Jos, Kaduna, Kano and Yola, recorded rates below 50 percent, highlighting persistent regional disparities in infrastructure and customer engagement.
Experts say these revenue gaps have broader implications for the Nigerian power market. When collections fall short, DisCos lack the liquidity to procure adequate generation capacity, service debt and maintain networks. This can exacerbate outages and reduce investor confidence, feeding into a cycle of underperformance that has dogged the sector since privatisation. Past reports have pointed to similar structural issues, including incomplete metering, high technical losses, and tariff shortfalls between regulated charges and actual cost recovery.
For regulators and policymakers, addressing these deficiencies is a priority as Nigeria pursues reforms aimed at stabilising electricity supply and improving service reliability. The hope among stakeholders is that better billing practices, expanded metering, and improved payment compliance will narrow shortfalls, attract investment, and strengthen the financial foundation of the distribution companies. But progress remains uneven, and the October figures underscore just how far the industry must go to achieve a sustainable balance between supply growth and financial health.
