Nigeria’s electricity distribution companies (DisCos) recorded a stronger financial performance in the second quarter of 2025, collecting a total of ₦564.71 billion in revenue — a modest but meaningful improvement from the previous quarter.
The data was released in the Q2 2025 Report of the Nigerian Electricity Regulatory Commission (NERC), which monitors performance trends across the nation’s power sector.
Modest Growth in Collection Efficiency
According to NERC, DisCos billed customers ₦742.34 billion in Q2 2025 and successfully collected 76.07% of that amount. This reflects a 1.68 percentage point rise in collection efficiency compared to the 74.39% recorded in the first quarter, when DisCos realized ₦553.63 billion from ₦744.26 billion billed.
NERC said the increase, though slight, demonstrates steady progress in revenue management, despite persistent operational and infrastructure challenges across the sector.
Eko, Ikeja, and Port Harcourt DisCos Lead the Pack
Three electricity distribution companies stood out for their strong revenue collection performance during the quarter — Eko, Ikeja, and Port Harcourt DisCos.
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Eko DisCo maintained its top position with an impressive 87.80% collection efficiency, the highest in the country.
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Port Harcourt DisCo showed notable improvement, climbing by 9.79 percentage points from the previous quarter.
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Ikeja DisCo also advanced by 4.89 percentage points, consolidating its status as one of the sector’s most efficient operators.
Other performers that recorded gains include:
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Benin DisCo, up by 5.04 percentage points,
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Ibadan DisCo, up by 4.20 percentage points, and
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Yola DisCo, up by 0.88 percentage points.
“These improvements indicate a gradual strengthening of operational and financial discipline among top-performing DisCos,” NERC stated in its report.
Jos and Abuja DisCos Struggle with Declining Performance
Despite the general progress, some distribution companies recorded setbacks in their collection efforts. Jos DisCo had the lowest performance, posting just 43.82% collection efficiency, while Abuja DisCo saw a 3.93 percentage point decline compared to Q1 2025.
NERC attributed these shortfalls to energy theft, poor metering coverage, billing disputes, and inefficiencies in customer management systems, which continue to hinder revenue recovery in some regions.
Why Collection Efficiency Matters
The regulator stressed that improving collection efficiency is essential for the sustainability of the Nigerian Electricity Supply Industry (NESI).
Stronger revenue performance allows DisCos to meet their financial obligations to the Transmission Company of Nigeria (TCN), the Nigerian Bulk Electricity Trading (NBET) company, and generation companies (GenCos) — all of which depend on timely remittances to sustain power supply stability.
“The liquidity of the power market depends heavily on how effectively DisCos collect payments from customers,” the report noted.
Background: Annual Revenue Trends
In its 2024 Annual Report, NERC revealed that DisCos collectively remitted ₦1.18 trillion, though the industry still faced an outstanding deficit of ₦185 billion, translating to an 86.47% remittance rate.
In Q4 2024, DisCos billed ₦658.40 billion but collected ₦509.84 billion, representing a 77.44% efficiency rate. While improvements were seen in early 2025, the sector continues to grapple with fluctuating revenues — as collection rates have historically dropped from highs of over 79% to as low as 74% in some quarters.
Outlook
NERC said it would continue implementing performance-based regulations and monitoring frameworks to push for higher accountability, improved customer billing accuracy, and the expansion of prepaid metering coverage across the country.
Experts believe sustained progress in revenue collection will be key to ensuring financial stability and reducing the funding gaps that have long constrained Nigeria’s power distribution network.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
