Electricity consumers in Nigeria owe Distribution Companies (DisCos) a staggering N54 billion for power consumed in February 2025, according to a recent report by the Nigerian Electricity Regulatory Commission (NERC).
In its February Factsheet, NERC revealed that the country’s 12 DisCos were able to recover N191.75 billion out of a total of N245.93 billion in billed amounts. This translates to a 77.9 per cent collection efficiency, marking a 6.56 per cent increase from the previous month, January 2025.
The report further highlighted that 2,583.19 gigawatt-hours of electricity was received by the DisCos in February, while 2,137 GWh was billed. This represents a billing efficiency of 82.73 per cent, showing an improvement of 1.81 per cent month-on-month.
Despite these improvements, NERC noted a gap between the allowed tariff and actual collection. The allowed average tariff was N116.18 per kilowatt-hour (kWh), yet the DisCos only managed to collect an average of N88.21 per kWh, resulting in a 75.9 per cent recovery efficiency a 10.5 per cent improvement from January’s figures.
DisCos Performance Breakdown
The report also shed light on the performance of individual DisCos, with Aba Power showing the largest discrepancy. Aba Power, which has the highest allowed tariff at N200.88 per kWh, was only able to collect N127.58 per kWh, with a total billing of N6.44 billion and a collection of N3.47 billion. This resulted in the lowest collection efficiency for the month at 53.90 per cent.
In contrast, Abuja Disco achieved the highest collection efficiency at 89.03 per cent, recovering N31.7 billion of the N35.67 billion billed. Eko Disco came in close behind, collecting N36.6 billion out of N41.24 billion, which corresponds to 88.76 per cent efficiency.
Other notable performers include Enugu Disco, which had N17.95 billion in billings and recovered N15.88 billion (88.47 per cent collection efficiency), and Ikeja Disco, which collected N33.35 billion of the N41.18 billion billed, achieving 81 per cent collection efficiency.
Continued Challenges in the Power Sector
Despite improvements in collection rates, commercial losses and low recovery rates continue to be a major concern for investors in the power sector. Unmetered customers with more than seven million still without meters remain a significant challenge. Disputes over estimated billing are a common issue, as customers often question the accuracy of the charges they receive.
Recently, NERC sanctioned eight DisCos for overbilling their customers, a move that underscores ongoing concerns over pricing transparency and consumer trust.
In a related development, Abba Aliyu, Managing Director of the Rural Electrification Agency, noted that investors in mini-grids are achieving recovery rates of over 95 per cent through metering, which highlights the importance of accurate consumption measurement for both collection efficiency and customer satisfaction.
As Nigeria continues to grapple with these issues, the need for comprehensive metering and improved collection systems remains crucial to the future stability and growth of the country’s electricity sector.
