Electricity consumers across Nigeria failed to pay a total of N70.25 billion in May 2025, according to the latest commercial performance report released by the Nigerian Electricity Regulatory Commission (NERC). The report sheds light on the growing financial challenges facing power distribution companies, known as DisCos, as they struggle to recover revenue despite improved electricity supply and billing.
According to NERC, the 12 DisCos billed Nigerian electricity users a combined N261.82 billion during the month of May. However, only N191.57 billion was recovered from consumers, representing a collection efficiency of 73.17 per cent. This means that nearly 27 per cent of the total electricity bills issued went unpaid. Compared to April 2025, this was a decline of 4.42 percentage points, showing a worsening trend in payment behavior.
In terms of electricity supply, the report revealed that DisCos received 2,774.49 gigawatt-hours (GWh) of energy from the national grid in May, a 5.80 per cent increase compared to the previous month. Out of that, they were able to bill customers for 2,255.51 GWh, which is 3.25 per cent more than what was billed in April.
Despite the improvement in both energy supply and billing, the billing efficiency — which measures the portion of received energy that is successfully billed — dropped to 81.29 per cent. This shows a 2.01 percentage point decline from the previous month, meaning more energy was being supplied without being accurately captured in customer bills.
The situation worsened further in revenue recovery. While the average allowed tariff per kilowatt-hour (kWh) stood at N116.25, the actual average amount collected was just N82.05/kWh. This translates to a revenue recovery efficiency of 70.58 per cent, down by 7.32 percentage points from April. In simple terms, the DisCos are collecting much less than what they are officially allowed to charge, putting pressure on their financial health.
Some electricity distribution companies performed better than others. Ikeja Electric, Benin Electricity Distribution Company (BEDC), and Eko Electricity Distribution Company (EKEDC) were the top performers in terms of both billing and revenue collection. Ikeja Electric recorded the highest billing efficiency at 89.04 per cent, while Eko led in revenue recovery with 82.52 per cent. Ikeja followed closely with a recovery rate of 81.55 per cent.
At the bottom of the performance table were Yola Electricity Distribution Company and Jos Electricity Distribution Company. Yola had the lowest billing efficiency at 63.45 per cent, while Jos had the weakest collection efficiency at 35.55 per cent. These two DisCos have consistently struggled to improve in key operational areas, despite efforts by NERC to push for reforms.
Industry analysts say the low recovery rate continues to threaten the financial viability of the Nigerian power sector. With poor collection rates, DisCos find it hard to pay the bulk electricity suppliers and fund infrastructure upgrades. This further impacts the overall reliability of the electricity supply chain.
The report also confirms that while supply has slightly improved, inefficiencies in metering, billing accuracy, and customer payment discipline remain a problem. Experts have called on the federal government, the DisCos, and the regulatory body to adopt tougher strategies, including prepaid metering rollout and better enforcement of payment compliance.
The Chairman of NERC, Engr. Sanusi Garba, had previously noted that without improvements in commercial performance, the sector will continue to face liquidity challenges. He emphasised the need for transparent operations and better customer engagement to rebuild trust and ensure higher compliance with bill payments.
Meanwhile, many Nigerians continue to complain about poor service quality, frequent blackouts, and estimated billing practices. In areas like Lagos, Port Harcourt, and Abuja, some customers claim they are overbilled despite receiving little or no power supply for several days. This further contributes to the unwillingness of consumers to pay their bills.
As the country pushes toward improving electricity access and financial sustainability, the commercial performance of DisCos remains a major concern. Unless these distribution companies find better ways to increase collection rates and improve service delivery, the sector may continue to battle with underperformance and huge financial losses.
