Nigeria’s Power DisCos Boost Q2 2025 Revenue to ₦564.7bn as Collection Efficiency Improves to 76%

Nigeria’s Power DisCos Boost Q2 2025 Revenue to ₦564.7bn as Collection Efficiency Improves to 76%

Story: Written by Myra Chinonso October 8,2025

Nigeria’s Electricity Distribution Companies (DisCos) recorded ₦564.7 billion in revenue for the second quarter (Q2) of 2025, reflecting improved collection efficiency despite a slight drop in total billing, according to the latest quarterly report released by the Nigerian Electricity Regulatory Commission (NERC).

Revenue Rises Despite Slight Decline in Billing

NERC’s data shows that the DisCos generated ₦564.71 billion from a total customer billing of ₦742.34 billion during Q2 2025.
This represents a 2% increase in revenue compared to the ₦553.63 billion collected in the previous quarter (Q1), even though total billing fell marginally by 0.26%, from ₦744.26 billion in Q1.

Collection Efficiency Climbs to 76.07%

The regulator noted that the overall collection efficiency—the percentage of revenue collected compared to the amount billed—rose to 76.07% in Q2 from 74.39% in Q1.
This marks a 1.68 percentage point (pp) improvement across Nigeria’s electricity distribution sector, indicating better payment recovery and reduced losses.

“At an aggregate level, DisCos recorded a 1.68 percentage point increase in collection efficiency between Q1 and Q2 2025,” NERC stated in the report.

Top and Bottom Performers

Among the 11 DisCos, Eko Electricity Distribution Company (Eko DisCo) maintained the best collection performance with an efficiency rate of 87.80%, followed by Ikeja DisCo and Ibadan DisCo.
On the other hand, Jos Electricity Distribution Company (Jos DisCo) posted the weakest result, with a collection rate of just 43.82%, reflecting persistent payment challenges in its franchise area.

Regional Performance Breakdown

The report highlighted that six DisCos improved their collection performance in Q2 compared to Q1, led by:

  • Port Harcourt DisCo (+9.79pp)
  • Benin DisCo (+5.04pp)
  • Ikeja DisCo (+4.89pp)
  • Ibadan DisCo (+4.20pp)
  • Eko DisCo (+3.01pp)
  • Yola DisCo (+0.88pp)

However, five DisCos saw their efficiency decline, with Abuja DisCo (-3.93pp) and Jos DisCo (-3.37pp) recording the steepest drops during the period.

Sector Outlook

Analysts say the improvement in collection efficiency reflects ongoing regulatory pressure on DisCos to enhance metering, billing transparency, and revenue collection processes.
However, they warn that the sector’s liquidity gap remains a major concern, as total remittances to the electricity market still lag behind billing levels.

NERC emphasized that continuous enforcement of performance benchmarks and deployment of technology-driven payment systems will be crucial to achieving sustainable growth in the power secctor

Joseph okafor

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