Electricity Distribution Companies (DisCos) collected a total revenue of N553.63 billion in the first quarter of 2025, according to the latest report released by the Nigerian Electricity Regulatory Commission (NERC) on Thursday.
The commission’s First Quarter 2025 Report, which was published on its official website in Abuja, revealed that this revenue came from a total customer billing of N744.27 billion during the period.
This means DisCos were only able to recover 74.39% of the billed amount. In contrast, the last quarter of 2024 recorded a better performance with a collection efficiency of 77.44%, where N509.84 billion was collected from N658.40 billion billed.
“The 74.39 per cent collection efficiency recorded in 2025/Q1 is 3.05 Percentage Point (PP) lower than the collection efficiency recorded in 2024/Q4, which represents 77.44 per cent,” the report stated.
Among the 11 electricity distribution companies reviewed, only four achieved collection efficiencies of 80% or higher. Eko DisCo led the group with an impressive 84.79% efficiency, while Jos DisCo had the lowest at 47.19%.
The report also noted that some DisCos managed to improve their performance compared to the previous quarter. “A comparison of DisCos’ performance shows that Kano had +6.55pp, Abuja +4.81pp and Enugu +0.72pp,” it said.
However, the report stated that eight other DisCos experienced a drop in their collection rates. Port Harcourt had the biggest decline at -15.11pp, followed by Kaduna with -7.12pp and Eko with -5.21pp.
Overall, both billing and collection efficiency went down during Q1 2025 by 2.47pp and 3.05pp respectively, compared to Q4 2024. The decline is linked to the 10.06% increase in energy taken by the DisCos during the quarter.
“Based on historical trends, this decline in efficiencies can be attributed to the increased energy off take of +10.06 per cent during the quarter compared to 2024/Q4.
“It has been observed that there is an inverse relationship between DisCos’ energy off take and their billing/collection efficiencies.
“Typically, when DisCos off take more energy, they often allocate the incremental energy to areas where they record historically lower billing and collection efficiencies,” the report said.
To tackle these inefficiencies, NERC has continued to push for better metering systems across the country. The commission noted that improved metering helps reduce commercial losses and increase revenue recovery.
“According to the report, the most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters.
“The Order, which became effective on 24 June 2024, directed DisCos to utilise the first tranche of disbursement from the MAF scheme to procure and install meters for unmetered Band A customers within their franchise areas.
“As of March 2025, DisCos have metered more than 41,000 Band A customers through the MAF scheme,” it said.
The commission also noted that DisCos are expected to keep using other metering programmes like the Meter Asset Programme (MAP) and the National Mass Metering Programme (NMMP) to expand their reach.
