NERC Report: Nigeria's Electricity DisCos Billed ?261.82 Billion in May, Collected Only ?191.57 Billion

The Nigerian Electricity Regulatory Commission (NERC) has released its latest factsheet for May 2025, revealing that the country’s eleven electricity Distribution Companies (DisCos) billed a total of ?261.82 billion, out of which only ?191.57 billion was collected. This results in a collection efficiency of 73.17%, an improvement of 4.42% from April 2025.

The report, published on July 28, is part of NERC’s continued efforts to provide transparency and oversight within the electricity sector, with a particular focus on performance metrics such as billing efficiency, revenue collection, and recovery across Nigeria’s regional DisCos.

Key Highlights from the Report

1. Energy Billed and Billing Efficiency
DisCos received a total energy supply of 2,774.49 GWh during May, but only 2,255.51 GWh was billed to consumers—an overall billing efficiency of 81.29%. This represents a minor decrease of 0.01% from April, suggesting continued issues with metering or internal billing systems.

2. Revenue Collection
While DisCos billed ?261.82 billion during the month, actual collections stood at ?191.57 billion. The 73.17% collection efficiency reflects a significant increase from the 68.75% recorded in April, signaling some improvements in customer engagement and payment enforcement across several service zones.

3. Revenue Recovery Performance
With an average tariff of ?116.25 per kilowatt-hour (kWh), the actual collection stood at ?82.05 per kWh—yielding a recovery efficiency of 70.58%. This marks a 7.32% increase from April and is one of the most promising performance indicators in the report.

Regional Performance Breakdown

The performance of individual DisCos varies widely, highlighting systemic disparities in Nigeria's power distribution landscape:

• Abuja DisCo recorded a billing efficiency of 73.64% and a collection efficiency of 75.20%.
• Eko DisCo achieved a leading recovery efficiency of 82.52%.
• Ikeja DisCo followed closely with a collection efficiency of 82.92%.
• Yola DisCo performed worst, with only 63.45% billing efficiency and 50.59% collection efficiency.
• Jos DisCo posted the lowest recovery efficiency at 39.79%.

These numbers highlight the stark contrast in infrastructure, operational capabilities, and consumer compliance between Nigeria’s southern urban centres and its northern or rural regions.

Sector Challenges and Legacy Issues

While the modest improvements in revenue collection are welcome, the persistent gaps in billing and recovery point to deeper structural flaws within Nigeria’s electricity sector. The dip in billing efficiency, although marginal, suggests lingering problems in meter accuracy and billing transparency. DisCos continue to face challenges ranging from outdated infrastructure and non-technical losses to electricity theft and payment default.

Historically, the sector has struggled with transmission losses, power theft, poor maintenance, and corruption. Although losses decreased from 46.9% in 1996 to 9.4% in 2008, recent figures suggest these gains have plateaued or even reversed in some regions.

Compounding the issue is the wide gap between electricity generation and demand. Despite a theoretical generation capacity of 11,165.4 MW from 23 power plants, inadequate transmission and distribution capacity leave most of the country underserved. This forces millions of Nigerians to rely on costly private generators.

NERC’s Strategy and Way Forward

The May 2025 factsheet serves as a wake-up call for deeper intervention. NERC has reiterated its commitment to improving transparency and accountability, encouraging DisCos to invest in smart metering and data-driven customer service models.

“Improving billing and collection systems is not just a technical necessity; it is a national economic imperative,” a NERC official said in response to the report.

The commission has also advocated for a phased rollout of smart meters and the deployment of prepaid billing systems, especially in underserved communities. Enhanced regulatory oversight, improved enforcement of customer obligations, and continuous public education campaigns are some of the suggested remedies.

Policy Implications and Stakeholder Action

For policymakers, the new data offers a roadmap to restructure subsidy models, revise tariff regimes, and tailor regional support mechanisms. It also strengthens the case for increased investment in grid infrastructure and renewable alternatives.

Stakeholders have called on the federal government to intensify its collaboration with DisCos and incentivize private-sector-led reforms in power generation and distribution.

As the country aims to achieve its 2030 energy access targets, reports like this underscore the need for bold decisions, targeted funding, and strategic public-private partnerships.

Conclusion

The NERC May 2025 factsheet paints a mixed picture—modest gains in revenue collection, but enduring inefficiencies in billing and regional performance. While some DisCos are adapting through better infrastructure and customer engagement, others remain trapped in cycles of underperformance and debt. Bridging this divide will be key to securing a reliable electricity supply for all Nigerians and driving sustainable national growth.