Electricity Distribution Companies (DisCos) in Nigeria recorded N1.713 trillion in revenue from January to September 2025, a 27% increase over the N1.249 trillion collected in the same period of 2024.

NERC’s View:

• The Nigerian Electricity Regulatory Commission (NERC) attributes the revenue rise to improved billing, collection, and recovery efficiency.
• September 2025 data:
  • Revenue collected: N196.26 billion of N241.54 billion billed
  • Billing efficiency: 86.43%
  • Revenue collection efficiency: 81.25%
  • Recovery efficiency: 83.45%
• Top-performing DisCos: Eko, Abuja, Ikeja, with Aba showing 102.85% billing efficiency.
• NERC claims efficiency improvements strengthen liquidity and service delivery in the Nigerian Electricity Supply Industry (NESI).

Experts’ Concerns:

• Experts argue the revenue growth reflects customer exploitation, not efficiency, as many consumers pay for electricity they don’t receive.
• Professor Wumi Iledare:
  • Criticizes Nigeria’s estimated billing system and Band Pricing, calling them unfair and inefficient.
• Power sector insider: Accuses NERC of failing to enforce equitable service delivery for over a decade.
• Adetayo Adegbemle, PowerUp Nigeria:
  • Notes the electricity subsidy has been unsustainable and historically distorts pricing.
  • Argues the phasing out of subsidies via the Service-Based Tariff (SBT) is aimed at reducing government strain and promoting efficiency.

Key Tension:

• NERC emphasizes billing and collection efficiency as a success, while experts warn that customers are overcharged and underserved, questioning the fairness and ethics of the system.