NERC: DisCos Left N669.5bn Electricity Bills Uncollected in 2025

Nigeria’s electricity distribution companies (DisCos) could not collect N669.49 billion from electricity bills issued to customers in 2025, raising fresh concerns over the financial health of the power sector.

The DisCos sold electricity worth N3.68 trillion in the year but billed customers N2.99 trillion, the Nigerian Electricity Regulatory Commission (NERC) said in its 2025 Annual Report.

However, of the total amount billed, only N2.32 trillion was collected, leaving N669.49 billion unremitted.

This translated to a collection efficiency of 77.60 per cent, NERC said.

The commission said the DisCos billed electricity consumers N2,988.30 billion, but collected only N2,318.81 billion, translating to a collection efficiency of 77.60%.

The figures mean the DisCos collected about N77.60 for every N100 they billed customers, leaving about N22.40 uncollected. The number of unpaid bills also grew considerably compared to the previous year.

The DisCos failed to collect N536.95 billion in 2024, NERC said. This grew to N669.49 billion in 2025, representing an increase of N132.54 billion, or 24.7 per cent, in one year.

The regulator’s report revealed that the problem was not just about customers not paying their bills. The DisCos supplied a huge amount of electricity not billed to customers in the first place.

NERC stated that the N3.68 trillion worth of electricity supplied during the year amounted to a gross billing efficiency of 81.14 per cent. This means that electricity worth about N694.80 billion was supplied but unbilled.

The commission said the combination of poor billing and collection continued to pressure the finances of the Nigerian Electricity Supply Industry (NESI).

The inefficiencies were “weakening the financial liquidity” of the industry and limiting its ability to support new investments, it said.

The financial difficulties also impacted the DisCos’ payments to other market participants in the electricity market.

The Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator, NERC stated, issued gross invoices of N1.72 trillion to the DisCos in 2025 for energy costs and administrative services.

The DisCos paid N1.63 trillion, which is 94.80 per cent of their obligations, with a shortfall of N89.58 billion.

The regulator termed the amount in question as an underpayment that was attributable to market participants.

The situation highlights one of the big problems facing Nigeria’s power sector: generating and distributing electricity is only part of the challenge, collecting the money owed for the power supplied remains a major issue.

When DisCos fail to collect enough revenue, they have fewer funds to satisfy their financial commitments and invest in infrastructure.

This can affect their ability to sustain distribution networks, replace faulty equipment, expand their networks and upgrade the supply of electricity to the consumers.

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The latest figures also come against a background of continuing problems with metering and accurate billing. Many electricity customers are still unmetered, and disputes over estimated bills and complaints about inaccurate billing have been common.

NERC has been advocating measures to improve metering, billing and revenue collection, as well as strengthening consumer protection.

The commission has also taken regulatory action against DisCos for poor performance and non-compliance of its rules. In one recent instance, NERC assumed regulatory oversight of the Kaduna Electricity Distribution Company following the discovery of significant financial and operational weaknesses.

The Nigerian electricity regulator said Kaduna Disko had a collection efficiency of 46.69 per cent in 2025 and its billing efficiency was 61.56 per cent.

The problem remains significant across the wider sector, with the latest annual figures showing that ongoing reforms have not yet solved it.

The Electricity Act 2023 brought in reforms to boost competition, investment and electricity access including permitting more participation from states and private investors in the electricity market.

But NERC’s latest figures suggest that improving DisCos’ financial performance remains critical to achieving the broader goals of the reforms.

For consumers, the revenue problem is directly related to the quality of electricity services that they receive. When DisCos are unable to recover enough money from the electricity they supply, their ability to invest in better infrastructure and provide more reliable service is compromised.

The N669.49 billion uncollected in 2025, therefore, is more than unpaid bills. That is money that could have been used to strengthen the electricity distribution system and to support investment across the sector.

NERC’s figures indicate that unless the industry can reduce billing gaps, improve metering and ensure that more customers pay for the electricity they consume, the financial problems affecting Nigeria’s power sector will remain difficult to resolve.