Electricity Distribution Companies Achieve 86% Billing Efficiency, Collects N241.54bn In September

Nigeria’s power sector recorded an improvement in commercial performance in September 2025, as electricity Distribution Companies (DisCos) achieved 86 per cent billing efficiency for the month.

This is according to the latest Commercial Performance Factsheet released by the Nigerian Electricity Regulatory Commission (NERC).

The report provides a detailed snapshot of how DisCos managed energy billing, cash collection, and overall financial efficiency, key indicators that shape liquidity and service delivery across the Nigerian Electricity Supply Industry (NESI).

The data showed that, in September, DisCos received energy valued at N279.45 billion, out of which N241.54 billion was successfully billed to customers.

This translated to a billing efficiency of 86.43 per cent representing an improvement of 2.58 per cent compared to August.

NERC noted that this upward movement reflects improved metering penetration, better energy accounting, and more aggressive billing verification practices adopted by top-performing DisCos.

Collections improve as DisCos recover more revenue

DisCos also recorded stronger cash recovery performance. Out of the N241.54 billion billed, the report shows, they collected N196.26 billion, marking a 2.69 per cent increase compared to the previous month.

This pushed collection efficiency to 81.25 per cent, up by 1.18 per cent, indicating that more customers are paying their electricity bills promptly — a trend crucial for reducing the sector’s longstanding liquidity constraints.

The factsheet further shows that with an approved average tariff of N116.34/kWh, the actual average collection stood at N97.09/kWh, leading to a revenue recovery efficiency of 83.45 per cent .

This represents a 3.67 per cent rise, underscoring DisCos’ increased effectiveness in converting billed energy into actual cash, despite lingering challenges around energy theft, meter bypass, poor infrastructure, and customer dissatisfaction.

Eko, Abuja, and Ikeja DisCos lead the table

The factsheet also ranked Eko, Ikeja, and Abuja DisCos among the top performers in metering coverage nationwide. However, NERC’s breakdown shows uneven performance across the 11 distribution companies:

Eko, Abuja, and Ikeja DisCos continued to rank among the best performers, maintaining high billing and collection efficiency with strong administrative processes and customer service systems.

Aba DisCo stood out with an impressive 102.85 per cent billing efficiency, driven largely by improved energy optimisation and efforts to reconcile legacy energy receivables.

Benin, Port Harcourt, and Kano DisCos delivered moderate performance levels but still lag behind the industry’s top tier.

Jos, Kaduna, and Yola DisCos performed below the sector average, with persistent operational challenges, limited metering coverage, and high collection losses affecting their standings.

The September 2025 performance, however, indicates that DisCos are moving in the right direction — gradually improving efficiency in a sector long plagued by financial instability and operational bottlenecks.

Earlier this month, NERC announced that the total number of active customers across all eleven DisCos increased from 11.89 million in July to 11.96 million in August 2025.

NERC stated that the improved metering figures reflect ongoing reforms and investments in customer management by DisCos, aimed at enhancing billing transparency and consumer trust.