DisCos Failed To Collect N669.5bn Bills In 2025 – NERC

Electricity Distribution Companies (DisCos) in Nigeria failed to collect N669.49 billion of billed electricity charges in 2025, the Nigerian Electricity Regulatory Commission (NERC) said in its 2025 Annual Report.

NERC reported that DisCos supplied electricity valued at N3.68 trillion last year but billed consumers only N2.99 trillion. Of the billed amount, only N2.32 trillion was collected, resulting in a collection efficiency of 77.6 per cent.

Put another way, DisCos recovered about N77.60 for every N100 billed, leaving roughly N22.40 uncollected. The regulator also said energy worth about N694.8 billion was supplied but not billed, a gross billing efficiency of 81.14.per cent.

Although collection efficiency has improved compared with prior periods, the total value of unpaid bills rose from N536.95 billion in 2024 to N669.49 billion in 2025 — an increase of N132.54 billion, or 24.7 per cent.

NERC also disclosed that the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator issued gross invoices of N1.72 trillion to DisCos for energy costs and administrative services in 2025. DisCos remitted N1.63 trillion — 94.8 per cent of the amount — leaving a market shortfall of N89.58 billion, which NERC attributes to underpayment by market participants.

Policy context and consumer measures

The regulator said these billing and collection shortfalls are weakening the financial liquidity of the Nigerian Electricity Supply Industry (NESI) and limiting its ability to support fresh investments.

The report comes amid sector reforms introduced by the Electricity Act 2023, which removed electricity from the Exclusive Legislative List and opened generation, transmission and distribution to greater state and private participation. The reforms aim to spur competition, attract investment and expand access.

NERC has introduced consumer-protection measures alongside revenue reforms. It previously ordered DisCos to process refunds under amended directives within 12 months and apply those refunds to customers’ electricity bills.

Sustained gaps between energy supplied and revenue collected reduce investment capacity across the power value chain, with implications for supply reliability and tariff stability. NERC continues to monitor distribution revenue performance; the regulator noted that DisCos generated N196 billion in revenue in February 2026. In October 2025 the federal government approved N28 billion under the Meter Acquisition Fund (MAF) Tranche B to support prepaid meter procurement and installation.