Nigeria’s electricity sector suffered a revenue shortfall of about N1.36tn in 2025 as power distribution companies failed to bill consumers for electricity worth N694.8bn and also failed to collect another N669.5bn from bills already issued, according to the Nigerian Electricity Regulatory Commission.
The figures were contained in NERC’s 2025 Annual Report, which showed that the 11 DisCos supplied electricity valued at N3.68tn during the year but billed customers for only N2.99tn, representing a gross billing efficiency of 81.14 per cent.
This means that electricity worth about N694.8bn supplied to consumers was not billed. According to the report, of the N2.99tn billed, the DisCos collected only N2.32tn, leaving N669.49bn outstanding. The combined billing and collection gap consequently amounted to about N1.36tn.
NERC stated, “The total billing to electricity consumers by the DisCos was N2.99tn, but only N2.32tn was collected, translating to a collection efficiency of 77.60 per cent.”
The commission also reported that DisCos received 31,251.77 gigawatt-hours of electricity at their trading points but billed customers for only 25,867.86GWh, giving an energy accounting efficiency of 82.77 per cent. Ibadan DisCo recorded the highest energy accounting efficiency at 88.84 per cent, while Enugu recorded the lowest at 72.18 per cent.
