NERC data shows over 16% of electricity supplied in October 2025 was never billed, deepening liquidity crisis despite improved revenue collections
Electricity distribution companies across Nigeria recorded major commercial losses in October 2025 as weak billing and incomplete revenue recovery continued to weigh heavily on the power sector, according to the latest industry data released by the Nigerian Electricity Regulatory Commission (NERC).
The commission’s commercial performance factsheet revealed that the country’s 11 electricity distribution companies (DisCos) billed customers a total of ₦255.19 billion for electricity supplied during the month but managed to collect only ₦210.92 billion, leaving a wide revenue gap that continues to undermine sector liquidity.
NERC data showed that the DisCos received electricity valued at ₦303.85 billion from the national grid in October, representing an 8.73 per cent increase compared to September. However, the amount converted into customer bills declined by 5.65 per cent, highlighting persistent inefficiencies in energy accounting and customer billing.
As a result, electricity worth ₦48.66 billion was supplied but never billed to customers during the month. This pushed industry-wide billing efficiency down to 83.99 per cent, a 2.45 percentage-point drop from September, meaning more than 16 per cent of power delivered to DisCos failed to appear on customer bills.
Despite the billing setback, revenue collection showed modest improvement. Total collections increased by 7.48 per cent month-on-month, lifting collection efficiency to 82.66 per cent, up 1.40 percentage points. NERC noted that some DisCos posted collection efficiencies above 100 per cent, largely due to the recovery of outstanding debts accumulated in previous months.
Even with the improved collections, significant revenue shortfalls persisted. Of the ₦255.19 billion billed in October, DisCos failed to collect ₦44.27 billion, compounding losses from unbilled energy. Combined, these weaknesses resulted in a recovery efficiency of 82.49 per cent, reflecting the portion of allowed revenue actually realised by operators.
The regulator further disclosed that while the allowed average tariff for October stood at ₦116.25 per kilowatt-hour, the actual average collection dropped to approximately ₦95.85/kWh, a 1.23 per cent decline from September. This growing disparity continues to place pressure on remittances to the Nigerian Bulk Electricity Trading Plc (NBET) and other participants across the electricity value chain.
Ikeja, Eko lead as performance gaps widen
A closer look at individual DisCo performance revealed sharp contrasts across the market. Ikeja Electricity Distribution Company emerged as the strongest performer in October, billing ₦41.26 billion out of ₦43.72 billion worth of electricity received, translating to a billing efficiency of 94.36 per cent. The company collected ₦42.11 billion, exceeding its billings and pushing collection efficiency to 102.07 per cent, while recovery efficiency climbed to 108.17 per cent.
Eko Electricity Distribution Company also maintained a strong showing, billing ₦40.29 billion out of ₦42.10 billion received, with a billing efficiency of 95.71 per cent, though slightly lower than September. It collected ₦37.67 billion, resulting in a collection efficiency of 93.50 per cent and a recovery efficiency of 101.65 per cent.
Abuja DisCo received electricity valued at ₦46.32 billion but billed only ₦38.93 billion, pushing billing efficiency down to 84.05 per cent, a steep decline from the previous month. Nevertheless, it posted a collection efficiency of 88.35 per cent, with recovery efficiency at 88.30 per cent.
Port Harcourt DisCo billed 80.32 per cent of energy received, slightly below September’s level, but recorded an improvement in collections, with collection efficiency rising to 87.07 per cent and recovery efficiency reaching 82.97 per cent.
Northern DisCos continue to face deep challenges
Several northern DisCos remained under severe commercial pressure. Jos DisCo recorded the weakest performance across the market. Although billing efficiency improved marginally to 84.89 per cent, it collected only ₦5.26 billion out of ₦13.50 billion billed, leaving collection efficiency at 38.98 per cent and recovery efficiency at 42.28 per cent.
Kaduna DisCo achieved a notable improvement in billing efficiency, which rose by 8.69 percentage points to 84.62 per cent, but collection performance remained weak at 43.03 per cent, keeping recovery efficiency at 43.70 per cent.
Enugu DisCo billed ₦20.95 billion out of ₦26.11 billion received, resulting in a billing efficiency of 80.23 per cent, while collection efficiency improved to 80.74 per cent, though recovery efficiency declined to 77.67 per cent.
Ibadan DisCo recorded one of the strongest gains in collections, with collection efficiency rising by 10.10 percentage points to 84.49 per cent, despite a slight drop in billing efficiency to 73.51 per cent. Recovery efficiency improved significantly to 74.16 per cent.
Meanwhile, Benin, Kano, and Yola DisCos remained in the amber zone. Benin DisCo billed just ₦19.84 billion out of ₦30.38 billion received, Kano DisCo posted high billing efficiency of 98.05 per cent but weak collections at 58.67 per cent, while Yola DisCo recorded billing efficiency of 66.03 per cent and collection efficiency of 69.35 per cent.
Reforms yet to plug revenue leakages
The October figures come amid ongoing regulatory and structural reforms aimed at improving the financial sustainability of Nigeria’s power sector. NERC has repeatedly emphasised the need for expanded metering, reduced energy theft, improved customer enumeration, and stricter enforcement of commercial performance standards.
However, the latest data indicate that unresolved weaknesses in billing and revenue protection continue to drain tens of billions of naira monthly, raising concerns about the long-term viability of recent reforms and the stability of the electricity market.
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