DisCos’ Revenue Hits ₦564.7 Billion in Q2 2025 as NERC Reports Steady Growth in Collection Efficiency
Nigeria’s electricity distribution companies (DisCos) posted a significant boost in revenue for the second quarter of 2025, collecting a total of ₦564.71 billion, according to the latest report released by the Nigerian Electricity Regulatory Commission (NERC). The figure represents a 1.68 percentage point increase in collection efficiency compared to the previous quarter, highlighting gradual improvement in the power sector’s financial stability.
The report revealed that DisCos billed customers a total of ₦742.34 billion, of which 76.07% was successfully collected, up from 74.39% in Q1 2025 when they recorded ₦553.63 billion in collections. This consistent growth underscores ongoing efforts by the NERC to strengthen the sector’s financial discipline through improved billing systems, metering, and enforcement measures.
Among the 11 DisCos, Eko, Ikeja, and Port Harcourt stood out as the top performers, with Eko DisCo leading at an impressive 87.80% collection efficiency. Port Harcourt and Ikeja also recorded strong improvements of 9.79 and 4.89 percentage points, respectively. Other notable performers include Benin (+5.04pp), Ibadan (+4.20pp), and Yola (+0.88pp), signaling broad-based progress across key distribution zones.
However, not all operators shared in the success story. Jos and Abuja DisCos continued to struggle, with Jos posting the lowest collection rate at 43.82%, while Abuja saw a 3.93 percentage point decline from the previous quarter. NERC attributed these shortfalls to billing inefficiencies, energy theft, operational lapses, and low metering coverage in affected regions.
According to NERC, the gradual rise in revenue collection is crucial for improving liquidity across Nigeria’s electricity value chain. Enhanced cash flow will enable DisCos to better meet their financial obligations to the Transmission Company of Nigeria (TCN), the Nigerian Bulk Electricity Trading (NBET) company, and generation companies (GenCos). The commission emphasized that sustained efficiency gains are vital for achieving long-term power sector reform and ensuring consistent service delivery to consumers.
source: Nairametrics