Nigeria's electricity distribution companies (DisCos) collectively failed to recover a staggering N92.93 billion in revenue for the month of October 2025. This significant financial gap was revealed in the latest commercial performance data released by the Nigerian Electricity Regulatory Commission (NERC).
Breaking Down the N92.93 Billion Deficit
The core of the problem lies in two critical areas: billing customers for energy received and then collecting the payments. In October, the DisCos received energy valued at N303.85 billion from the transmission network. However, they only managed to bill consumers for N255.19 billion, creating an initial shortfall of N48.66 billion.
The situation worsened at the collection stage. Out of the N255.19 billion billed, the DisCos collected only N210.92 billion. This left a further N44.27 billion collection gap. When combined, these inefficiencies resulted in the total N92.93 billion revenue deficit for the single month.
Performance Metrics Show Alarming Trends
NERC's factsheet, made public on January 12, 2026, indicates a worrying decline in billing efficiency. The rate fell to 83.99% in October, a drop of 2.45 percentage points from September 2025. This points to persistent issues like technical losses, commercial losses from unmetered customers, and outright theft.
While collection efficiency saw a slight improvement to 82.66%, the overall recovery efficiency—which measures actual revenue collected against the allowed tariff—slipped to 82.49%. The allowed average tariff was N116.25 per kilowatt-hour, but DisCos only managed to collect an average of N95.89 per kilowatt-hour.
Disparate Performance Across Distribution Companies
A detailed look at individual DisCos reveals a landscape of extreme highs and lows:
Ikeja DisCo emerged as a top performer, billing N41.26 billion from N43.72 billion received (94.36% efficiency) and collecting N42.11 billion, achieving a collection efficiency above 100% due to recovering old debts.
Eko DisCo also showed strength in billing, converting 95.71% of received energy into customer bills.
On the weaker end, Benin DisCo recorded one of the poorest revenue recoveries. Its billing efficiency was just 65.32%, and it collected only N16.61 billion from energy valued at N30.38 billion.
The most severe collection challenges were seen in Jos and Kaduna DisCos. Jos DisCo collected a mere N5.26 billion from N13.50 billion billed, a collection efficiency of only 38.98%. Kaduna DisCo fared similarly poorly, with a recovery efficiency of 43.70%.
Implications for Nigeria's Power Sector
This substantial revenue shortfall has dire consequences. It limits the ability of DisCos to invest in network maintenance, meter installation, and infrastructure upgrades, which are crucial for improving service delivery. The gap also affects their ability to pay for the energy they receive from generating companies, creating a liquidity crisis that cripples the entire electricity value chain.
The NERC data underscores the urgent need for targeted interventions to address metering gaps, reduce technical and commercial losses, and improve revenue collection mechanisms, particularly in the underperforming regions. Without decisive action, the financial viability of the power sector remains under severe threat.
