Consumers Pay N1.13tn Electricity Bill Despite Blackouts

Electricity distribution companies (DisCos) in Nigeria generated a combined ₦1.13 trillion in revenue from customers over a six-month period covering the second and third quarters of 2025 (April to September), according to monthly performance figures released by the Nigerian Electricity Regulatory Commission (NERC).

The revenue was collected despite widespread complaints from consumers over inadequate power supply and frequent blackouts across many parts of the country.

Within the period reviewed, the national power grid experienced a total system collapse that left many customers without electricity. At the same time, power generation companies reported reduced output due to low gas supply, largely linked to outstanding debts owed to gas suppliers.

NERC’s report on monthly revenue performance and collection efficiency across the 11 DisCos showed that in 2025/Q3, total revenue collected stood at ₦570.25 billion out of ₦706.61 billion billed to customers, resulting in a collection efficiency of 80.70 per cent. This marked an improvement from 2025/Q2, when DisCos collected ₦564.71 billion from ₦742.34 billion billed, representing a 76.07 per cent collection efficiency.

Combined figures for both quarters indicate that electricity consumers paid ₦1.13 trillion in total over the six months. Overall, DisCos recorded a 4.63 percentage-point increase in collection efficiency between the second and third quarters of 2025.

In the third quarter, Ikeja DisCo recorded the highest collection efficiency at 100 per cent. Other DisCos that achieved collection efficiencies above 80 per cent included Eko (88.74 per cent), Benin (86.44 per cent), and Abuja (81.60 per cent). Kaduna DisCo posted the lowest performance, with a collection efficiency of 45.67 per cent.

A comparison of quarterly performance showed improvements in collection efficiency for Ikeja (+17.58 pp), Port Harcourt (+8.83 pp), Yola (+8.72 pp), Abuja (+5.24 pp), Jos (+4.90 pp), Eko (+0.94 pp), and Benin (+0.89 pp). However, four DisCos recorded declines, with Kaduna (-2.70 pp) and Ibadan (-1.34 pp) experiencing the sharpest drops.

Revenue collection in the second quarter totalled ₦564.67 billion, comprising ₦197.08 billion in April, ₦188.70 billion in May, and ₦178.89 billion in June. In the third quarter, collections rose slightly to ₦570.28 billion, with ₦190.52 billion recovered in July, ₦187.47 billion in August, and ₦192.29 billion in September.

Although total billing declined between Q2 and Q3, the modest rise in collections contributed to the overall improvement in collection efficiency by 4.63 percentage points. September 2025 recorded the highest monthly collection figure during the period, suggesting a degree of stabilisation.

Performance across DisCos varied significantly. Urban-based operators such as Ikeja exceeded 100 per cent efficiency in Q3, likely due to the recovery of legacy debts, while Eko led in recovery rates. In contrast, several northern DisCos, including Kaduna, Jos, and Kano, continued to lag behind.

NERC attributed the improvement in collection and energy accounting efficiencies partly to reduced energy offtake during the quarter. The commission noted an inverse relationship between the volume of energy taken by DisCos and their collection efficiency, explaining that lower energy offtake often leads operators to focus on areas with historically better revenue recovery.

The regulator also emphasised the importance of accurate metering in boosting revenue performance, describing customer enumeration and end-use metering as the most effective tools for improving energy accounting and collections.

NERC disclosed that the first tranche of the Meter Acquisition Fund (MAF), which ended in June 2025, led to the installation of 107,461 meters for unmetered Band A customers. Following this, the commission approved the operationalisation of MAF Tranche B in September 2025, allowing DisCos to deploy up to ₦28 billion from the fund to meter Band A and Band B customers within their franchise areas.