Nigeria’s electricity Distribution Companies (DisCos) have continued with their lethargic disposition, leaving customers in darkness as well as about N669.49 billion in billed electricity charges uncollected from customers in 2025.
The Nigerian Electricity Regulatory Commission’s (NERC) in its 2025 Annual Report stated that DisCos supplied electricity worth N3.68 trillion during the year but billed customers N2.99 trillion.
According to the regulator, of the amount billed, only N2.32 trillion was collected, representing a collection efficiency of 77.60%.
NERC said the N3.68 trillion worth of energy supplied translated to a gross billing efficiency of 81.14%,
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The implication according to NERC us tgst despite billing efficiency of 81 percent with the energy supplied worth N3.68tn , a whopping electricity worth about N694.80 billion was supplied but not billed to customers.
The regulator said the combination of billing and collection inefficiencies continued to weaken the financial liquidity of the Nigerian Electricity Supply Industry (NESI), limiting its capacity to support new investments.
“The total billing to electricity consumers by the DisCos was N2,988.30 billion, but only N2,318.81 billion was collected, translating to a collection efficiency of 77.60%,” the regulator noted.
Despite the improvement in efficiency, the value of unpaid bills increased from N536.95 billion in 2024 to N669.49 billion in 2025, representing an increase of N132.54 billion, or 24.7%.
NERC also reported that the Nigerian Bulk Electricity Trading Plc (NBET) and Market Operator (MO) issued N1.72 trillion in gross invoices to DisCos in 2025 for energy costs and administrative services.
DisCos remitted N1.63 trillion, representing 94.80% of their obligations and leaving a market shortfall of N89.58 billion.
The regulator described the shortfall as an underpayment attributable to market participants.
The new Act by Bola Tinubu administration, replaced the Electric Power Sector Reform Act 2005 and removed electricity from the Exclusive Legislative List, enabling states and private entities to participate more directly in electricity generation, transmission and distribution.
The reform, which has resulted in cyrren osrticiostion if nany states in the provision if electricity, was designed to promote competition, attract investment and expand electricity access.
NERC has also contijued to introduced series of measures to protect consumers, including directive to DisCos to complete refunds of over billings, under amended orders within 12 months.
