Michael Daniel
The Nigerian Electricity Regulatory Commission (NERC) says the country’s electricity distribution companies (DisCos) lost about ₦158.05bn in the second quarter of 2025 due to inefficiencies in billing, metering, and revenue collection.
According to NERC’s 2025 Second Quarter Report analysed on Tuesday, the industry recorded an Aggregate Technical, Commercial and Collection (ATC&C) loss of 37.92%, far exceeding the 20.54% target used to set electricity tariffs. The losses include 18.39% technical and commercial loss and 23.93% collection loss.
NERC stated that the shortfall “translates to a cumulative revenue loss of ₦158.05 billion” for the DisCos.
DisCos Billed ₦742bn, Collected ₦564bn
The report shows that DisCos billed ₦742.34 billion out of ₦909.59 billion worth of energy received — a billing efficiency of 81.61%, leaving ₦167.25 billion unbilled.
Collections amounted to ₦564.71 billion from the billed total, reflecting a collection efficiency of 76.07%.
Upstream invoices from the Nigerian Bulk Electricity Trading (NBET) and the Market Operator totalled ₦417.35 billion, while DisCos remitted ₦399.20 billion, leaving ₦18.15 billion outstanding. This represents a 95.65% remittance performance for the quarter.
Eko Leads as Kaduna, Abuja, Ibadan Lag Behind
Among the DisCos, Eko DisCo was the only one to outperform its ATC&C target in Q2, earning an additional ₦2.19 billion as a result.
Other DisCos failed to meet their targets. Kaduna DisCo recorded the worst performance, posting an actual ATC&C loss of 70.98% against a 21.32% target — a gap that led to a ₦21.68 billion revenue loss. Abuja and Ibadan DisCos each lost more than ₦20 billion in recoverable revenue.
NERC: Losses Stem from Poor Billing, Metering, and Theft
NERC attributed the losses to a combination of factors, including gaps in energy metering and accounting, weak collections, and widespread electricity theft.
The Commission stressed that excess ATC&C losses cannot be recovered from consumers, warning that persistent inefficiencies could threaten the financial sustainability of the power distribution segment.
Power Generation Averaged 4,501 MWh/h
The second quarter saw modest generation levels, with average available generation capacity at 5,395.72MW, average hourly generation at 4,501.06 MWh/h, and total generation reaching 9,830.31 GWh.
The industry maintained a load factor of 83.42%, a key determinant of how much energy ultimately gets distributed and billed.
NERC Tightens Oversight, Issues 37 Orders
In response to these inefficiencies, NERC said it is enforcing stricter oversight through various regulatory tools — Orders, Directives, Rectification Notices, and Enforcement Proceedings.
The Commission issued 37 Orders in the quarter and initiated enforcement actions against defaulting licensees.
It also expanded metering initiatives under the Meter Acquisition Fund (MAF) and continued certifying Meter Asset Providers (MAPs) and Meter Service Providers (MSPs) to accelerate nationwide metering.
Quoting the Electricity Act 2023, NERC reaffirmed its mandate to ensure “the safety, security, reliability, and quality of service in the production and delivery of electricity to consumers.”
Metering Progress and Consumer Complaints
According to the report, 225,631 new meters were installed in Q2, marking a 20.6% increase compared to the previous quarter. Over 107,000 Band A customers have been metered under the MAF initiative.
However, NERC warned that progress remains too slow to close the gap in commercial losses.
The Commission also recorded 227,267 consumer complaints received by DisCos, of which 67.56% were resolved at forum offices. In addition, the power sector reported 60 accidents, resulting in 57 casualties — a figure NERC described as concerning for both workers and consumers.
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