By Gloria Akudoro
Electricity Distribution Companies (DisCos) in Nigeria recorded a total revenue of N630.93 billion in the fourth quarter of 2025, out of N795.06 billion billed to customers.
The Nigerian Electricity Regulatory Commission (NERC) disclosed this in its Q4 2025 report, stating that the performance reflects a collection efficiency of 79.36 percent.
By comparison, DisCos collected N570.25 billion from the N706.61 billion billed in the third quarter of 2025, representing a collection efficiency of 80.70 percent. This indicates a 1.35 percentage point decline in collection efficiency between Q3 and Q4 2025.
In Q4 2025, Ikeja DisCo recorded the highest collection efficiency of 91.66 percent while four (4) other DisCos recorded collection efficiencies greater than 80 percent (Eko 90.34%; Benin 84.72%; Abuja 83.11% and Port Harcourt 80.67%).
Conversely, Kaduna DisCo recorded the lowest collection efficiency at 41.83 percent. A comparison of DisCos’ performance shows that Yola (+8.72pp), Ibadan (+2.43pp), Eko (+1.60pp), Abuja (+1.51pp) and Port Harcourt (+1.37pp) DisCos recorded improvements in collection efficiency between Q3 2025 and Q4 2025.
Conversely, the remaining six (6) DisCos recorded declines in collection efficiency,
with Ikeja (-8.72pp) DisCo having the most significant decline across the quarters.
Under billing efficiency – NERC explained that the naira value of the total energy supplied by all DisCos in Q4 2025 was N969.19 billion, and the naira value of the total energy billed was N795.06 billion, which translates to a billing efficiency of 82.03 percent. Comparatively, the naira value of the total energy supplied by all DisCos in Q3 2025 was N854.53 billion, and the naira value of the total energy billed was N706.61 billion, which translated to a billing efficiency of 82.69 percent. This means that at an aggregate level, DisCos recorded a 0.66pp decrease in billing efficiency between Q3 2025 and Q4 2025.
The commission further revealed that in Q4 2025, DisCos cumulatively recorded billing losses of N174.12 billion, driven largely by a combination of – commercial losses, including energy theft and poor energy accounting; inability of DisCos to bill energy at the weighted average allowed tariff.
“The disaggregated performance of the DisCos shows that Eko DisCo recorded the highest billing efficiency of 94.98 percent, while Yola DisCo recorded the lowest billing efficiency of 62.84 percent,” it revealed.
The report under review also shows that energy accounting and collection efficiencies decreased by 1.03pp and 1.35pp, respectively, compared to Q3 2025.
According to NERC, based on historical trends, this decrease in efficiencies across the two quarters can be attributed to the increased energy offtake (+8.74%) during the quarter compared to Q3 2025.
“It has been observed that there is an inverse relationship between DisCos’ energy offtake and their energy accounting/collection efficiencies. Typically, when DisCos offtake more energy, they often allocate the incremental energy to areas where they record historically lower energy accounting and 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. Following the completion of Tranche A of the Meter Acquisition Fund (MAF) in June 2025, which recorded a total installation of 107,461 meters for Band A customers, the Commission issued the Order on the operationalisation of MAF Tranche B in September 2025. The Order provides that DisCos could utilise N28.00 billion out of the funds that have accrued in the MAF for the metering of Bands A and B customers in their franchise area.
“Meter installations under the Distribution Sector Recovery Program (DISREP) also commenced in May 2025. The DISREP is a strategic initiative by the Federal Government of Nigeria (FGN), supported by a $500 million World Bank loan, aimed at improving the financial and technical performance of Nigeria’s Electricity Distribution Companies (DisCos). One of the major objectives of DISREP is to close the metering gap in the NESI by deploying 3.2 million smart meters.
“In addition to the MAF and DISREP, DisCos are expected to continue to utilise any of the metering frameworks provided for in the NERC MAP and NMMP metering regulation (2021) to improve end-use customer metering in their franchise areas. This will reduce commercial and collection losses, thereby improving the flow of funds to upstream market participants in the NESI,” the report disclosed.
