Electricity Distribution Firms’ Revenue Remittance Drops By 27.9% To N399.20bn In Q2 — NERC

The Nigerian Electricity Regulatory Commission (NERC) has reported a significant decline in the revenue remittance by electricity distribution companies (DisCos) in the second quarter of 2025.

According to the latest NERC quarterly report for the second quarter, DisCos collectively remitted N399.20 billion to the electricity market in Q2, marking a 27.9 per cent decrease from previous quarters when the remittance stood at N553.63 billion.

However, the report revealed that DisCos’s cumulative upstream invoice was N417.35 billion, consisting of N348.66 billion for DRO-adjusted generation costs from NBET4 and N68.68 billion for transmission and administrative services by the Market Operator (MO).

Out of this amount, the DisCos collectively remitted a total sum of N399.20 billion (N333.90 billion for NBET and N65.30 billion for MO) with an outstanding balance of N18.15 billion, which translates to a remittance performance of 95.65% in 2025/Q2 compared to the 95.86% recorded in 2025/Q1.

The report disclosed that the six international bilateral customers purchasing power from the grid-connected GenCos made a cumulative payment of $9.015 million against the $17.54 million invoice issued to them by the MO for services rendered in 2025/Q2, with a remittance rate of 51.33 per cent, thereby owing $8.5 million in debts during the period.

Similarly, the report showed that the domestic bilateral customers made a cumulative payment of N1,401.00 million against the N2,796.29 million invoice issued to them by the MO for services rendered in 2025/Q2, with a remittance rate of 50.10 per cent.

The NERC report said the naira value of the total energy offtake by all DisCos in 2025/Q2 was N909.59 billion, and the total energy billed was N742.34 billion, which translates to a billing efficiency of 81.61 per cent.

This means that at an aggregate level, DisCos could not account for N167.25 billion worth of energy received at their trading points in 2025/Q2.

The report also states that the total revenue collected by all DisCos in 2025/Q2 was N564.71 billion out of N742.34 billion billed to customers. This translates to a collection efficiency of 76.07 per cent, representing an increase of 1.68 per cent compared to 2025/Q1 (74.39 per cent).

It said the weighted average Technical, Commercial, and Collection (ATC&C) loss across all DisCo in 2025/Q2 was 37.92 per cent, comprising technical and commercial loss (18.39 per cent) and collection loss (23.93 per cent).

ATC&C loss is a summation of the billing losses incurred by a DisCo due to its inability to bill 100 per cent of energy delivered to customers (technical and commercial losses); and collection losses arising from the DisCo’s failure to collect 100 per cent of the bills issued to customers.

The report said the ATC&C loss of 37.92 per cent is 17.38 per cent higher than the 2025 MYTO target (20.54 per cent), translating to a cumulative revenue loss of N158.053 billion across all DisCos. The ATC&C loss decreased by 1.69pp (better performance) compared to 2025/Q1 (39.61 per cent).

According to the report, all the DisCos except Eko failed to achieve their target ATC&C during the quarter, with Kaduna DisCo recording the worst underperformance relative to the target ATC&C (Actual – 70.98 per cent vs. target – 21.32 per cent).