Electricity Distribution Companies (DisCos) in Nigeria generated a total of N570.25 billion in revenue during the third quarter of 2025, according to the Nigerian Electricity Regulatory Commission (NERC). This performance marks a significant improvement in the collection efficiency and revenue recovery across the country’s power sector during the period.

Revenue and Collection Efficiency Performance

The total revenue collected represents a collection efficiency of 80.70%, which is a notable increase from the 76.07% recorded in the second quarter of 2025. DisCos billed a total of N706.61 billion for the quarter, and the increase in collection efficiency indicates that more consumers are meeting their electricity payment obligations under the existing tariff and billing systems.

In Q2 2025, the DisCos collected N564.71 billion from a billed amount of N742.34 billion, demonstrating a recovery gap that has since narrowed significantly in the third quarter.

Leading DisCos and Performance Trends

Among the DisCos, Ikeja Electric stood out, achieving a 100% collection efficiency. Other top-performing DisCos included Eko, Benin, and Abuja DisCos, each surpassing the 80% efficiency mark. On the other hand, Kaduna Electric recorded the lowest collection efficiency, at just 45.67%, indicating areas where improvement is necessary.

Metering Progress

In terms of metering, the DisCos installed a total of 228,614 meters during the third quarter of 2025. This represents a modest 0.73% increase compared to 226,959 meters installed in the previous quarter. Of the total meters installed, 77.12% (or 176,302 meters) were installed under the Meter Asset Provider (MAP) framework, highlighting the growing role of private sector involvement in meter installation.

Additionally, 25.01% (or 44,104 meters) were installed through the Vendor Financed framework, and 3.46% (or 7,902 meters) were part of the Distribution Sector Recovery Programme (DSRP).

Customer Metering Status

As of September 2025, there were 12,030,315 active registered customers across the Nigerian electricity supply industry. Of these, 6,661,564 customers (or 55.4%) were metered, leaving a significant portion of customers still awaiting installation of meters. To combat exploitation due to the lack of meters, NERC has continued to enforce monthly energy caps on unmetered customers. These caps set the maximum energy that can be billed based on the energy received by the DisCos and the consumption patterns of metered customers on the same feeders.

Conclusion

The third-quarter report reveals notable progress in both revenue collection and metering in the Nigerian electricity sector. While revenue performance is improving and more meters are being installed, the ongoing efforts to address the metering gap and ensure fair billing practices for unmetered customers are vital to the sector’s continued growth and stability. NERC’s focus on transparency, better collection efficiency, and customer protection remains key to enhancing the sector’s performance and customer satisfaction.