₦airaland Forum

Electricity distribution companies recorded a shortfall of over N202bn in their revenue collections for the first quarter of 2025, despite a rise in electricity billing across the country, an analysis of official industry data by The PUNCH has shown.

This was as data revealed that electricity billing by distribution companies increased by 106.68 per cent or N393.26bn year-on-year from the same period in 2024.

According to the latest report published by the Nigerian Electricity Regulatory Commission, the 12 power distribution companies, also known as Discos, billed customers a total of N761.91bn between January and March 2025.

However, only N559.3bn was collected during the period, translating to a revenue collection efficiency of 73.4 per cent and a shortfall of N202.61bn or 26.6 per cent.

This performance is slightly improved compared to the same period in 2024, when the Discos collected N291.62bn out of N368.65bn billed, representing a collection efficiency of 79.1 per cent and a shortfall of N77.03bn.

However, the quantum of revenue lost in 2025 more than doubled year-on-year, and the percentage of revenue lost due to non-payment increased.

The performance indicates an improvement in volume from the total revenue collected by all Discos in 2024/Q4, which was N509.84bn out of the N658.40bn that was billed to customers. A detailed breakdown of the figures showed wide disparities in the performance of the Discos.


While some recorded moderate improvements, others still grappled with significant revenue gaps, raising fresh concerns over the financial viability of Nigeria’s power sector.

For instance, Ikeja Electric, which billed the highest amount among the Discos, issued invoices totalling N129.91bn but managed to collect only N101.2bn, leaving a gap of N28.71bn and a revenue shortfall of 22.1 per cent.

Similarly, Eko Disco billed N123.76bn but collected N101.51bn, a shortfall of N22.25bn or 17.9 per cent, while Abuja Disco billed N109.73bn and realised N88.1bn, losing N21.63bn or 19.7 per cent to non-payment.

Ibadan Disco billed N82.88bn but collected N61.73bn, losing N61.73bn or 25.5 per cent. Benin Disco billed N64.96bn, collected N52.31bn, and lost 19.5 per cent; Enugu Disco billed N55.56bn, receiving N44.95bn in payments.

At the lower end of the collection chart were Jos, Kaduna, and Yola Discos, all of which recorded alarming gaps between energy billed and actual revenue. Jos Disco billed N36.31bn but got back only N17.13bn, reflecting a revenue shortfall of over 52 per cent. Kano Disco billed N40.51bn, collected N25.5bn, recording a 37.1 per cent shortfall.

Kaduna Disco billed N24.22bn and collected N11.72bn, while Yola Disco billed N14.42bn and managed to recover only N8.2bn, representing a 43.1 per cent shortfall. Aba Power, the newest entrant among the Discos, billed N17.65bn and collected N9.32bn, losing N8.33bn in the process.

These shortfalls have once again brought to the fore the long-standing concerns over Discos’ operational efficiency, especially in the area of revenue collection. The data paints a grim picture of persistent inefficiencies in revenue assurance, particularly in the northern axis of the country, where collection rates are lowest.


In a recent media briefing, the Minister of Power, Adebayo Adelabu, expressed disappointment at what he described as “chronic underperformance” by the Discos, blaming their inability to invest in critical metering, network upgrades, and collection systems.

“The Discos are not meeting expectations. There is a serious lack of investment in infrastructure and revenue assurance mechanisms,” Adelabu said. “This inefficiency is one of the biggest obstacles to ensuring cost-reflective tariffs and attracting investment into the sector.”


He said the government was reviewing performance agreements and warned that licenses of consistently underperforming DisCos could be revoked if there was no measurable improvement.

Energy experts have long argued that revenue shortfalls in the power sector threaten not only the financial health of the Discos but also the entire electricity value chain, including the transmission and generation segments, which rely on regular remittances to survive.

Amidst persistent complaints about erratic electricity supply, many Nigerians continue to grapple with poor power delivery, largely due to recurring technical faults on distribution feeders.

Recently, the Abuja Electricity Distribution Company said it refunded electricity credit worth N241.45m to 9,823 customers across its franchise areas as compensation for billing irregularities and regulatory infractions committed between June 2024 and January 2025.

The NERC report concludes that “efforts must be intensified by all DisCos to close the metering gap, improve network reliability, and enhance billing transparency” to improve trust and boost collections.


But unless the structural inefficiencies within the sector are decisively addressed, the issue of poor revenue performance and, by extension, unreliable power supply may persist well into the future.

Reacting to this, the National Secretary of the Nigeria Electricity Consumer Advocacy Network, Mr Uket Obonga, criticised the performance of power distribution companies, accusing them of gross underperformance and failure to comply with key regulatory requirements.

Obonga in an interview on Sunday, said there was no doubt the Discos were underperforming, particularly in the area of electricity distribution. He alleged that many of them were still engaged in load rejection, contrary to their mandated daily energy allocations.

“There is still the issue of load rejection by the Discos. Also, the Aggregate Technical, Commercial, and Collection losses remain high. This is clear evidence that the Discos are not meeting performance expectations,” he said.

On the recent concerns around increased electricity tariffs, the consumer advocate questioned the basis of the bills being issued, especially to unmetered customers.

“How much of these increased charges are even based on actual metered consumption? Are the Discos adhering to the approved energy caps or are they just issuing arbitrary bills in total disregard of the regulations?” he queried.

He further alleged that despite sanctions imposed by the NERC, some Discos were still violating the approved energy caps and misbilling unmetered customers. “I have it on good authority that some of these companies are still flouting NERC’s directives on energy caps, even after being fined,” he said.


Obonga maintained that the core challenge was the failure of the Discos to invest in infrastructure since taking over the distribution assets.

“After they paid the acquisition capital to buy 60 per cent equity, there has been little or no further investment from them. The 40 per cent held by the government has also not translated into meaningful improvement. No Disco has brought in the required investment funds for expansion and upgrade of the distribution network,” he stated.

According to him, this lack of investment has worsened ATC&C losses, revenue shortfalls, and market inefficiencies in the power sector. “If the ATC&C losses remain high, if revenue collection is poor, and if market shortfalls persist, then something is fundamentally wrong. It shows clearly that the Discos are not performing,” Obonga added.

GanagiBitrus:
Let them just make prepaid meters available, such that you pay as you consume.

Not the one you will be given high estimated bill even with little or no power.

GanagiBitrus:
Let them just make prepaid meters available, such that you pay as you consume.

Not the one you will be given high estimated bill even with little or no power.

treesun:
https://punchng.com/discos-raise-bills-107-despite-poor-power/

anonimi:
May 1, 2025

May Day: Hunger, unemployment, insecurity real— Tinubu

According to him: “The theme demands our collective attention and serves as a stark reminder of the need to create an environment where every worker feels safe, valued, and empowered to contribute to the growth and prosperity of our nation. As your President, I assure you that this administration is committed to creating such an environment for the common good.”

On the economic hardship, he noted that while it is a global phenomenon, its effects on Nigerians are particularly severe.

Tinubu said: “I am aware of the peculiarities of the economic hardship Nigerians face—rising living costs, hunger, insecurity, unemployment, and the loss of livelihoods. These challenges are real and demand definitive solutions, which I am poised to address as your President.

https://www.vanguardngr.com/2025/05/may-day-hunger-unemployment-insecurity-real-tinubu/

columbus007:
Lolz, and Where's the light even.

Fashola to Nigerians: 'If You Want to Have Stable Electricity Supply, Vote PDP Out in 2015'

Jul 11, 2014.

Lagos State Governor, Mr. Babatunde Fashola, while marking his 2,600 days in office at an elaborate ceremony held at the Blue Roof of the Lagos Television premises, has said voting out the ruling Peoples Democratic Party (PDP) from power in next year’s general election is the only way the country can have stable electricity.

According to The Nation, Fashola said electricity crisis in the country is caused by lack of ideas and insincerity of purpose on the part of Federal Government.

"Yes I agree with you that it is possible to generate electricity and to make sure that everybody in this country has electricity, we have to do the right thing. But you know what, the only way that you and I will have electricity in this country will be to vote out the PDP.

https://thenationonlineng.net/only-way-to-have-stable-electricity-is-to-vote-out-pdp-says-fashola/#google_vignette

Dalohad:
People are dumping DISCOs and installing Solar.

My village was without light for 5 years. I spent N5 million installing solar and gave NEPA a middle finger.

I will be spending N15 million this to have my office go off-grid.

In the next 20 years, DISCOS will struggle to stay afloat, more people will dump them, and they will increase bills, layoff staffs and reduce power distribution to stay afloat.

Those who still patronize them will pay the fee of those who have dumped them to go off-grid.


Write this words on stone for future reference.

GanagiBitrus:
Let them just make prepaid meters available, such that you pay as you consume.

Not the one you will be given high estimated bill even with little or no power.

Dalohad:
People are dumping DISCOs and installing Solar.

My village was without light for 5 years. I spent N5 million installing solar and gave NEPA a middle finger.

I will be spending N15 million this to have my office go off-grid.

In the next 20 years, DISCOS will struggle to stay afloat, more people will dump them, and they will increase bills, layoff staffs and reduce power distribution to stay afloat.

Those who still patronize them will pay the fee of those who have dumped them to go off-grid.


Write this words on stone for future reference.

seborrhic:
Stop typing rubbish.
Nothing can compare to electricity from the power grid,financially,functionally and efficiency wise.
There are lots of things your solar cannot do,unless your energy consumption is for light and small appliances.
Even when the inverter breaks down,changing it imvolves a big outlay,unlike electricity where you pay on a monthly basis.
They should just give everybody prepaid metre with regular supply,then nigerians will learn how to manage their units to reduce the financial burden.