Nigeria’s electricity regulator has raised fresh alarm over persistent metering gaps in the power sector, even as Electricity Distribution Companies (DisCos) improved revenue collections in the second half of 2025.
The Nigerian Electricity Regulatory Commission (NERC) disclosed that DisCos collected ₦1.13 trillion in the second and third quarters of 2025, reflecting a 4.63 percentage-point improvement in collection efficiency quarter-on-quarter.
Despite the gains, NERC said the sector continues to face serious liquidity pressures, recording a combined revenue shortfall of ₦314.35 billion over the two quarters.
According to NERC’s Q3 2025 report, DisCos recovered ₦570.25 billion out of ₦706.61 billion billed in Q3, translating to a collection efficiency of 80.70%, up from 76.07% in Q2. In Q2, DisCos collected ₦564.71 billion from ₦742.34 billion billed.
Monthly data showed collections of ₦564.67 billion between April and June 2025, rising slightly to ₦570.28 billion between July and September. September emerged as the strongest month, with ₦192.29 billion recovered.
Performance varied significantly across the country. Ikeja DisCo recorded the highest collection efficiency at 100 per cent in Q3, followed by Eko (88.74%), Benin (86.44%), and Abuja (81.60%).
At the bottom of the table, Kaduna DisCo posted the weakest performance with an efficiency rate of 45.67 per cent.
Quarter-on-quarter, seven DisCos improved their efficiency, led by Ikeja (+17.58pp), Port Harcourt (+8.83pp), Yola (+8.72pp), and Abuja (+5.24pp). However, four DisCos recorded declines, with Kaduna (-2.70pp) and Ibadan (-1.34pp) posting the steepest drops.
NERC attributed stronger performances in areas such as Ikeja and Eko to legacy revenue recoveries and aggressive collection drives, while weaker results, particularly in parts of the North, were linked to infrastructure deficits, energy theft, and billing inefficiencies.
Despite better collections, NERC said the ₦314.35 billion revenue shortfall, ₦177.68 billion in Q2 and ₦136.34 billion in Q3, continues to strain cash flows across the electricity value chain, limiting investment in network upgrades and service delivery.
The commission also flagged persistently high Aggregate Technical, Commercial and Collection (ATC&C) losses, which stood at 33.27 per cent in Q3, far above the 20.54 per cent benchmark under the MYTO 2025 framework.
A key contributor to these losses is poor metering coverage. NERC revealed that over five million electricity customers remain unmetered nationwide, leaving many exposed to estimated billing.
“The most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters,” the commission said, adding that DisCos have been directed to deploy funds from Tranche A of the Meter Acquisition Fund (MAF) to meter unserved Band A customers.
Analysts say closing the metering gap and cutting ATC&C losses are critical to improving sector liquidity, restoring investor confidence, and supporting sustainable growth in Nigeria’s power market.
While tariff adjustments and operational reforms have lifted collections in recent years, NERC warned that without accelerated metering and infrastructure investment, efficiency gains may remain fragile.
