Nigeria’s power sector lost N187bn to unbilled energy between July and October 2025, exposing billing inefficiencies and weak revenue collection in DisCos

Nigeria’s power sector lost approximately N187 billion to unbilled electricity between July and October 2025, according to data released by the Nigerian Electricity Regulatory Commission (NERC), highlighting persistent inefficiencies that continue to weaken the industry’s liquidity.

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NERC’s Commercial Performance of Distribution Companies (DisCos) factsheets show that the 11 DisCos received electricity worth N300.04 billion in July but billed customers only N243.14 billion, leaving N54.9 billion unbilled and resulting in a billing efficiency of 81.04 per cent.

Billing efficiency improved slightly in August to 83.85 per cent, yet N45.97 billion remained unbilled, while September recorded the highest efficiency at 86.43 per cent, leaving N37.91 billion unbilled.

Efficiency declined again in October to 83.99 per cent, with a shortfall of N48.66 billion despite higher energy intake from the national grid.

Analysts attribute the losses to a combination of poor metering, estimated billing, energy theft, network losses, and operational lapses across franchise areas.

Disparities among DisCos were significant.

Kano DisCo led with 98.05 per cent billing efficiency, followed by Eko at 95.71 per cent and Ikeja at 94.36 per cent.

In contrast, Benin billed just 65.32 per cent, Yola 66.03 per cent, and Ibadan 73.51 per cent of supplied electricity.

Collection efficiency also varied sharply.

While Ikeja collected 102.07 per cent of billed revenue, Jos DisCo managed only 38.98 per cent, Kaduna 43.03 per cent, and Kano 58.67 per cent, reflecting severe liquidity challenges in certain networks.

Overall, the sector’s recovery efficiency stood at 82.49 per cent for October 2025.

Despite an average allowed tariff of N116.25 per kilowatt-hour, DisCos collected an average of N95.89 per kilowatt-hour.

Experts warned that continued inefficiencies in billing and revenue recovery threaten market stability, as shortfalls at the distribution level ripple across the electricity value chain.

Consumer advocates noted that poor billing practices increase costs for compliant customers, while energy lost to theft and metering inadequacies remains unrecovered, raising questions about the sustainability of ongoing reforms.

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NERC stressed that improving billing and collection efficiencies is critical for stabilising the sector and ensuring that reforms translate into reliable service and financial sustainability for Nigeria’s electricity market.