Nigeria’s electricity distribution companies (DisCos) failed to collect N669.49 billion in electricity bills issued to customers in 2025, highlighting persistent revenue challenges in the power sector.
The figure is contained in the Nigerian Electricity Regulatory Commission’s (NERC) 2025 Annual Report.
According to the report, DisCos supplied electricity valued at N3.68 trillion during the year and billed customers N2.99 trillion. However, only N2.32 trillion was ultimately collected.
This translated to a 77.60 per cent collection efficiency, meaning DisCos recovered about N77.60 for every N100 billed to customers.
NERC said the value of unpaid electricity bills increased significantly during the year.
The N669.49 billion uncollected in 2025 was N132.54 billion higher than the N536.95 billion recorded in 2024, representing a 24.7 per cent increase.
The growing gap between billing and collection continues to put pressure on the financial position of the electricity distribution segment and the wider Nigerian Electricity Supply Industry (NESI).
NERC said persistent billing and collection inefficiencies were weakening the liquidity of the electricity market and limiting its ability to support new investments.
The regulator also identified another major revenue gap.
Of the N3.68 trillion worth of electricity supplied to DisCos in 2025, only N2.99 trillion was billed to customers.
This implies that electricity worth approximately N694.80 billion was supplied but not billed, resulting in a gross billing efficiency of 81.14 per cent.
The figures expose two separate challenges facing the sector: electricity that is supplied but not billed and electricity that is billed but not collected.
The revenue challenges extend beyond customer collections.
NERC reported that the Nigerian Bulk Electricity Trading Plc (NBET) and Market Operator issued DisCos N1.72 trillion in gross invoices during 2025 for energy costs and administrative services.
DisCos paid N1.63 trillion, representing 94.80 per cent of their obligations and leaving a market shortfall of N89.58 billion.
NERC described the unpaid amount as an underpayment attributable to market participants.
The figures come amid ongoing efforts by the government and regulators to improve Nigeria’s electricity market.
The Electricity Act 2023 introduced reforms intended to increase competition, attract investment and expand electricity access, while allowing states and private entities greater participation in electricity generation, transmission and distribution.
Metering also remains a key part of the effort to improve revenue collection and reduce disputes between consumers and DisCos.
In October 2025, the Federal Government approved N28 billion under the Meter Acquisition Fund Tranche B scheme to support the procurement and installation of prepaid electricity meters.
For the power sector, however, increasing electricity supply alone may not be enough. The 2025 figures show that billing customers accurately and collecting what is billed remain equally important to the financial sustainability of the electricity market.
