How Electricity Companies Billed Nigerians Billions Despite Poor Supply, Details Emerge

• DisCos generated N630.93 billion from N795.06 billion billed in Q4 2025, a decline in billing efficiency when compared to the previous quarter
• Collection efficiency dropped slightly to 79.36 per cent from 80.70 per cent in Q3, with total billing losses recorded standing at N174.12 billion
• The latest market report by the NERC shows that only Eko DisCo met its ATC&C target, while Kaduna DisCo recorded the worst performance

Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.

Electricity distribution companies (DisCos) in Nigeria recorded a combined revenue of N630.93 billion in the fourth quarter of 2025, according to a report released by the Nigerian Electricity Regulatory Commission.

The commission disclosed that the amount was realised from a total billing of N795.06 billion within the period, reflecting a collection efficiency of 79.36 per cent.

Collection efficiency drops slightly

According to the report, the 79.36 per cent collection rate represents a slight decline compared to the 80.70 per cent recorded in the third quarter of 2025.

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This indicates that DisCos collected a smaller proportion of billed revenue during the period under review.

Billing performance also declines

The report further showed that the total value of energy supplied to DisCos stood at N969.19 billion in Q4 2025.

Out of this, N795.06 billion was billed to customers, translating to a billing efficiency of 82.03 per cent.

NERC noted that this figure also dropped marginally from the 82.69 per cent recorded in the previous quarter.

At the same time, the commission revealed that electricity distribution companies recorded cumulative billing losses of N174.12 billion during the quarter.

It explained that these losses arise from the inability of DisCos to fully account for energy delivered to customers, as well as challenges in collecting payments for billed electricity.

ATC&C losses remain high

The report stated that the Aggregate Technical, Commercial and Collection (ATC&C) loss across all DisCos averaged 34.90 per cent in Q4 2025.

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This includes 17.97 per cent in technical and commercial losses, alongside 20.64 per cent in collection losses.

NERC added that most DisCos failed to meet their performance targets during the quarter, with only Eko Electricity Distribution Company meeting its ATC&C benchmark.

However, Kaduna Electricity Distribution Company recorded the poorest performance, with an actual loss level of 69.45 per cent compared to its target of 21.32 per cent.

Darkness persists despite FG’s promise of stable electricity supply

Legit.ng earlier reported that electricity generation in Nigeria has remained below expected levels, weeks after the Minister of Power, Adebayo Adelabu, assured Nigerians that outages would ease within two weeks.

Despite slight improvements, power supply has continued to fluctuate between 3,000 and 4,000 megawatts, leaving many households and businesses without stable electricity and raising concerns about the feasibility of the minister’s timeline.

Nigeria has faced widespread blackouts in recent weeks, largely attributed to gas shortages affecting thermal power plants. Power distribution companies had issued repeated apologies, promising improvements that are yet to be fully realised.

Source: Legit.ng