Victor EzejaIkeja Electricity Distribution Company (DisCo) recorded the highest in billing customers for electricity consumed in May 2025.
Other top performers included Benin and Eko DisCos.
Join our WhatsApp ChannelThis is as electricity consumers across Nigeria failed to pay ₦70.25 billion in May 2025, despite being billed a total of ₦261.82 billion by the 12 DisCos in the period under review.
According to the latest report on commercial performance of DisCos released by the Nigerian Electricity Regulatory Commission (NERC), only ₦191.57 billion was collected, resulting in a collection efficiency of 73.17 per cent, which was a 4.42 percentage point drop from April 2025.
According to the report, the total amount of energy that the DisCos received rose by 5.80 per cent to 2,774.49 gigawatt-hours, while the total amount of energy that they were billed increased by 3.25 percent to 2,255.51 gigawatt-hours.
Although energy supply and billing increased, billing efficiency fell to 81.29 percent, a decrease of 2.01 percentage points from the month before.
Revenue recovery performance also dropped sharply. While the allowed average rate was ₦116.25 per kilowatt-hour, actual collection averaged ₦82.05/kWh, representing a recovery efficiency of 70.58 percent, down 7.32 percent from April. This indicates that the DisCos recovered much less than what they were allowed to charge.
READ ALSO:
On the commercial performance of the DisCos, while Ikeja recorded the highest billing efficiency of 89.04 per cent, it was second (81.55 per cent) only to Eko DisCo (82.52 per cent) in revenue recovery.
Declining Revenue Recovery
The allowed average tariff was ₦116.25/kWh, but DisCos collected only N82.05/kWh, indicating a recovery efficiency of 70.58 per cent, a sharp 7.32 percentage point decline from April.
This gap highlights financial strain on DisCos, affecting their ability to pay generation companies and maintain infrastructure.
Worst-Performing DisCos
Jos DisCo had the lowest collection efficiency (35.55 per cent), while Yola DisCo recorded the weakest billing efficiency (63.45 per cent).
Both distribution companies also lag in metering. While Jos recorded ~24.77 per cent, Yola was at 14.45 per cent, exacerbating revenue losses .
Sector Challenges
Billing inefficiencies (81.29 per cent) and energy losses persist due to metering gaps and theft.
Consumers in areas like Lagos and Abuja complain of overbilling despite poor supply, reducing payment willingness.
NERC emphasises the need for prepaid metering, stricter compliance, and infrastructure upgrades to improve liquidity.
While Ikeja DisCo leads in operational efficiency, the sector-wide ₦70 billion debt and declining revenue recovery underscore systemic issues. Experts have noted that addressing metering gaps and service quality is critical to improving DisCos’ financial health.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
