Electricity: Consumers pay N1.13tn bill despite blackouts
File copy: National grid
Electricity distribution companiesDisCos recorded a 4.63 pp increase in collection efficiency between 2025/Q2 and 2025/Q3. in Nigeria collected a total of N1.13tn in revenue from their customers over the six months spanning the second and third quarters of 2025 (April to September), according to detailed monthly performance data from the Nigerian Electricity Regulatory Commission.
This is despite repeated complaints of low power supply among electricity consumers and incessant cases of blackouts in many locations nationwide.
During the period under review, the national power grid suffered a total collapse, plunging customers into darkness. At the same time, GenCos (power generation companies) reported a reduction in power generation due to the low gas supply to power plants as a result of unpaid debts.
Despite this, the NERC report on monthly revenue performance and collection efficiency, covering the 11 DisCos, stated that the total revenue collected by all DisCos in 2025/Q3 was N570.25bn out of the N706.61bn that was billed to customers.
This translates to a collection efficiency of 80.70 per cent. In comparison, the total revenue collected by all DisCos in 2025/Q2 was N564.71bn out of the N742.34bn billed to customers, which translated to a 76.07 per cent collection efficiency.
The summation of both quarters indicates that power users paid N1.13tn to the distribution companies as electricity bills for the six months. This means that at an aggregate level, DisCos recorded a 4.63 pp increase in collection efficiency between 2025/Q2 and 2025/Q3.
In 2025/Q3, Ikeja DisCo recorded the highest collection efficiency of 100 per cent, while three other DisCos recorded collection efficiencies greater than 80 per cent: Eko, 88.74 per cent; Benin, 86.44 per cent; and Abuja, 81.60 per cent. Conversely, Kaduna DisCo recorded the lowest collection efficiency at 45.67 per cent.
A comparison of DisCos’ performance shows that Ikeja (+17.58 percentage points), Port Harcourt (+8.83 pp), Yola (+8.72 pp), Abuja (+5.24 pp), Jos (+4.90 pp), Eko (+0.94 pp), and Benin (+0.89 pp) DisCos recorded improvements in collection efficiency between 2025/Q2 and 2025/Q3.
Conversely, the remaining four DisCos recorded declines in collection efficiency, with Kaduna (-2.70 pp) and Ibadan (-1.34 pp) DisCos having the most significant declines across the quarters.
From April to June 2025, N564.67bn was collected, translating to N197.08bn in April, N188.70bn in May, and N178.89bn in June. In the third quarter, when revenue grew to N570.28bn, a sum of N190.52bn was recovered in July, N187.47bn in August, and N192.29bn in September.
The six-month total of N1.13tn reflects a modest increase in absolute collections from Q2 to Q3, despite a decline in total billing between the two quarters. This contributed to the overall improvement in collection efficiency by 4.63 percentage points in Q3 compared to Q2.
The data underscores ongoing efforts by DisCos to enhance revenue recovery amid challenges such as estimated billing, energy theft, and infrastructure constraints. Collections in September 2025 (N192.29bn) represented the highest monthly figure in the period, indicating some stabilisation.
Individual DisCo performances varied widely, with urban-based operators like Ikeja exceeding 100 per cent efficiency in Q3 due to possible legacy recoveries and Eko leading in recovery rates, while northern DisCos such as Kaduna, Jos, and Kano lagged significantly.
“In 2025/Q3, energy accounting and collection efficiencies increased by 1.37 pp and 4.63 pp, respectively, compared to 2025/Q2. Based on historical trends, this increase in efficiencies across the two quarters can be attributed to the decreased energy offtake (-6.08 per cent) during the quarter compared to 2025/Q2.
“It has been observed that there is an inverse relationship between DisCos’ energy offtake and their energy accounting/collection efficiencies. Typically, when DisCos take less energy, they often prioritise areas where they record historically lower energy accounting and collection inefficiencies.
NERC noted that accurate metering is needed to boost collection efficiencies. “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 issued the order on the operationalisation of Tranche A of the Meter Acquisition Fund in 2024/Q2. The Order directed DisCos to utilise the first tranche of disbursement from the MAF scheme to procure and install meters for unmetered Band A customers within their franchise areas.
“The first tranche of MAF ended in June 2025 and recorded a total meter installation of 107,461 for Band A customers. Subsequently, the commission issued the Order on the operationalisation of MAF tranche B in September 2025, and the Order provides that DisCos could utilise N28bn out of the funds that have accrued in the MAF for the metering of Bands A and B customers in their franchise area,” the report added.
