The Electricity distribution companies (Discos) 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, according to the official industry data.
According to the analysis of the data by Punch newspaper on Tuesday, the electricity billing by distribution companies increased by 106.68 per cent or N393.26bn year-on-year from the same period in 2024.
It added that the latest report published by the Nigerian Electricity Regulatory Commission, stated that 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.
According to the report, 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.
The report recalled a media briefing in which Nigeria’s 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.
The report, however, quoted some energy experts as saying that the 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.
GIK/APA