Revenue of Power Distribution Companies Rises 43% to N1.5 Trillion

Nigeria’s electricity distribution companies have recorded a significant increase in revenue collections, amassing a total of N1.5 trillion in the first eight months of 2025, data from the Nigerian Electricity Regulatory Commission (NERC) show. This represents a 43 per cent rise compared with N1.05 trillion collected during the same period in 2024.

According to NERC’s latest Commercial Performance Report, the 12 electricity distribution firms remitted N553.63 billion in the first quarter of 2025, N564.71 billion in the second quarter, and N193.96 billion in July. An additional N191.11 billion was collected in August, bringing total revenue for the period to approximately N1.503 trillion.

The regulator attributed the increase to improved billing systems, stricter tariff enforcement, ongoing metering drives, and tighter revenue monitoring. Collection efficiency across the sector reached 80.07 per cent in August, slightly up from 79.77 per cent in July, suggesting a gradual improvement in financial stability within the power sector.

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Eko Electricity Distribution Company led in collection, remitting N33.4 billion in August, slightly above July’s N33.2 billion. Ikeja Electric followed with N38.7 billion and maintained a collection efficiency of 102.67 per cent due to legacy-billing adjustments. Other notable performers included Abuja DisCo (N29.09 billion), Benin DisCo (N14.74 billion), Port Harcourt DisCo (N14.45 billion), Enugu DisCo (N14.54 billion), and Ibadan DisCo (N19.96 billion). At the lower end, Jos and Kaduna DisCos posted the least efficient collections at 50 and 52 per cent, respectively. Overall, the combined energy billed in August was N238.67 billion, while the DisCos received electricity worth N284.64 billion from the national grid.

Despite the gains, NERC cautioned that gaps remain in billing accuracy and energy accounting, with national billing efficiency at 83.85 per cent—below international standards. At a recent Power Correspondents Association of Nigeria conference, Chief Princewill Okorie of the Association for Public Policy Analysis highlighted that liquidity challenges in the sector persist due to the DisCos’ negligence in maintaining infrastructure. He stressed that consumers often bear the cost of providing transformers, meters, and other infrastructure, while DisCos generate revenue without adequately reinvesting in these assets. Okorie further noted that some meters initially provided for free were sold to consumers, with proceeds diverted by DisCos, exacerbating the financial stress in the sector.

With ongoing reforms and the rollout of digital billing initiatives, NERC projected that total revenue collections for 2025 could surpass N2.2 trillion if the current trend continues, signaling a potential recovery in the financial health of Nigeria’s power distribution networks.