Nigeria’s electricity distribution companies generated a combined revenue of about N2.33tn in 2025, according to regulatory data, even as millions of consumers across the country continued to grapple with unreliable electricity supply, estimated billing, and frequent power outages.
An analysis of monthly industry figures released by the Nigerian Electricity Regulatory Commission shows that the 12 power distribution companies collectively earned N2.325tn from electricity consumers throughout the year. The figure represents a significant increase when compared with the approximately N1.8tn recorded in 2024, indicating a rise of about N525bn, or nearly 29 per cent within a year.
The increase in revenue collections occurred amid growing frustration among electricity users who argue that the quality of power supply has not improved in line with rising tariffs and billing enforcement under Nigeria’s partially deregulated electricity market. Consumers across residential, commercial, and industrial categories have repeatedly complained about erratic electricity supply, prolonged outages, and the continued use of estimated billing in many areas.
Industry figures show that the distribution companies recorded N553.63bn in revenue during the first quarter of 2025, reflecting strong billing and collection performance during the early part of the year. In the second quarter, collections increased slightly to N564.71bn as utilities strengthened billing systems and enforcement measures across their networks.
The trend of high revenue collections continued into the second half of the year. In July 2025, electricity payments from customers reached N193.96bn. The figure declined slightly in August to N191.11bn, representing a marginal drop of about N2.85bn, but collections quickly rebounded in the following months.
In September, revenue rose again to N196.26bn, marking an increase of roughly N5.15bn compared with the previous month. The upward trend continued in October when electricity payments climbed to about N210bn, making it one of the strongest collection months of the year.
Although revenue dipped slightly towards the end of the year, the figures remained consistently high. In November, the distribution companies collected N208.78bn, representing a minor decline of about N1.22bn compared with October. Collections fell again in December to about N207bn, reflecting a drop of roughly N1.78bn from the November figure.
Despite the slight reductions recorded in the final months of the year, the data show that electricity payments by consumers consistently hovered between N190bn and N210bn monthly throughout the second half of 2025.
Regulatory figures also revealed a change in the volume of electricity billed during the same period. According to the commission, December billing declined by about four per cent when compared with the N269.43bn billed in November. However, the industry’s collection efficiency improved slightly during the month.
Collection efficiency rose to 80.22 per cent in December from 77.49 per cent recorded in November, suggesting that distribution companies were able to recover a larger share of the revenue billed to customers despite the decline in total billing.
The commission’s report also indicated that the total value of energy received by distribution companies in December stood at N309.65bn. This represented a decrease of approximately 9.54 per cent compared with the N342.29bn recorded in November.
Further analysis of the data showed varying levels of revenue recovery among the different electricity distribution companies operating across Nigeria’s power market.
Eko Electricity Distribution Company recorded the strongest performance with a revenue recovery rate of 99.45 per cent, indicating that it was able to recover nearly all the revenue approved for collection during the period. Other utilities also posted relatively strong performances.
Yola Electricity Distribution Company recorded a recovery rate of 87.89 per cent, while Ikeja Electricity Distribution Company achieved 85.32 per cent. Abuja Electricity Distribution Company followed closely with a recovery performance of 84.43 per cent.
Several other utilities recorded moderate recovery levels. Benin Electricity Distribution Company posted a recovery rate of 71.36 per cent, while Ibadan recorded 73.19 per cent and Enugu achieved 73.50 per cent. Port Harcourt Electricity Distribution Company also recorded a recovery rate of 79.29 per cent.
The regulatory commission noted that the figures provide insight into how efficiently electricity distribution companies are able to bill customers, collect payments, and recover revenues within the Nigerian Electricity Supply Industry. These indicators are considered critical for improving liquidity in the power sector and ensuring the financial stability needed to support operational improvements.
However, despite the growth in revenue collections, the broader electricity sector continues to face major structural challenges that affect service delivery across the country.
Nigeria’s power generation capacity remains significantly below national demand. Electricity generation in the country frequently fluctuates between 3,000 megawatts and 5,000 megawatts, far lower than the estimated demand of more than 20,000 megawatts for Africa’s most populous nation.
In addition to limited generation capacity, the sector continues to struggle with persistent technical challenges. Frequent grid disturbances have led to several nationwide blackouts in recent years, while gas supply shortages to thermal power plants have constrained electricity production.
The country’s ageing transmission infrastructure also remains a major bottleneck in the electricity value chain, limiting the ability to efficiently deliver power generated by plants to distribution networks across the country.
Despite these systemic challenges, electricity payments by consumers have continued to increase year after year. The steady rise in collections has raised concerns among industry stakeholders about the growing financial burden on households and businesses, particularly at a time when many Nigerians continue to experience unstable power supply.
Energy experts argue that higher revenue collections alone cannot resolve the underlying problems in the sector. They stress that meaningful improvements in electricity supply will require simultaneous investments in power generation capacity, transmission infrastructure, and distribution networks.
According to analysts, unless these critical segments of the electricity value chain are strengthened together, increased billing and revenue recovery by distribution companies may not necessarily translate into better electricity supply for millions of Nigerians who continue to rely on alternative energy sources such as generators to meet their daily power needs.
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