In 2025, an analysis of Nigeria’s 11 electricity distribution companies (DisCos) showed a significant disparity in performance levels. Eko and Ikeja emerged as leaders in billing, collections, and remittances. In contrast, Kaduna and Yola fell behind in these critical areas.
The 2025 Annual Report and Accounts from the Nigerian Electricity Regulatory Commission (NERC), published recently, revealed that Distribution Companies (DisCos) billed customers ₦2.99 trillion out of the ₦3.68 trillion in electricity supplied to their networks, resulting in a shortfall of ₦694.80 billion.
Eko DisCo recorded the highest billing efficiency, billing 95.41 per cent of the value of electricity supplied to its network. Ikeja followed with 90.77 per cent, while Kano recorded 90.26 per cent.
At the bottom, Yola billed only 60.99 per cent of the electricity it received, while Kaduna recorded 61.56 per cent.
The gap between Eko and Yola was more than 34 percentage points, highlighting the uneven commercial performance of the distribution sector.
In revenue collection, Eko collected 87.90 per cent of its billed revenue, narrowly ahead of Ikeja at 87.89 per cent. Kaduna and Jos recorded much lower collection rates of 45.68 per cent and 46.11 per cent respectively.
This shows that the challenge for weaker DisCos goes beyond billing, as significant portions of billed revenue remain uncollected.
The gap was even wider when technical, commercial and collection losses were considered.
NERC put the industry’s average loss at 37.03 per cent, well above the efficient benchmark of 20.54 per cent.
Eko was the only DisCo to outperform its regulatory target, recording losses of 16.13 per cent against a target of 16.88 per cent.
Kaduna recorded the worst performance, with losses of 71.88 per cent against an efficient target of 21.32 per cent.
The financial impact was reflected in market remittances. Eko, Ikeja and Port Harcourt achieved 100 per cent remittance to the Nigerian Bulk Electricity Trading Plc (NBET), while Kaduna recorded only 40.13 per cent.
A similar pattern was recorded in payments to the Market Operator. Abuja, Benin, Eko, Enugu, Ikeja, Port Harcourt and Yola achieved 100 per cent remittance, while Kaduna again ranked lowest at 48.11 per cent.
Metering also showed a sharp difference among the DisCos. At the end of 2025, only 57.27 per cent of active registered customers nationwide were metered.
Ikeja recorded the highest metering rate at 86.40 per cent, followed by Eko at 85.87 per cent. Yola had the lowest at 30.80 per cent, while Jos recorded 31.43 per cent.
The DisCos also differed in how efficiently they converted electricity received into billable energy. Ibadan recorded the highest energy accounting efficiency at 88.84 per cent, followed by Eko at 88.52 per cent. Enugu recorded the lowest at 72.18 per cent.
NERC noted that Kano, Eko, Abuja and Ikeja recorded significant differences between the amount of electricity physically accounted for and the value billed.
According to the regulator, the four DisCos “skewed their energy delivery to feeders that are more commercially viable and/or have high energy accounting efficiency.”
The performance gap comes as the electricity sector continues to rely heavily on government support.
The Advocate Times reports that the Federal Government incurred a gross electricity subsidy obligation of ₦1.93 trillion in 2025 after tariffs remained frozen at July 2024 levels despite rising costs.
Despite improvements in grid stability, the sector’s financial sustainability remains fragile. Grid collapses fell from nine in 2024 to two in 2025, while hydropower accounted for 32.66 per cent of total generation.
NERC’s figures indicate that a major challenge now lies at the distribution end of the electricity market — delivering power to customers, accurately measuring consumption, issuing bills and collecting payments.
Until these weaknesses are addressed, increased generation and a more stable national grid may not translate into a financially sustainable electricity sector.
