Nigeria’s electricity distribution companies recorded a surprising 22% jump in revenues, collecting a total of N570.25 billion ($370 million) in the third quarter of 2025, according to the Nigerian Electricity Regulatory Commission (NERC). The rise comes even as millions of Nigerians continue to face frequent power outages and an unstable electricity supply, highlighting a paradox in Africa’s largest energy market.
The growth in revenue was driven primarily by recent tariff adjustments rather than improved service delivery. Data from NERC shows that the actual energy billed to consumers fell slightly to 6,158.54 gigawatt-hours from 6,449.82 GWh in the previous quarter. Ikeja Electric led the pack with collections of N117.08 billion, followed by Eko Electricity Distribution at N101.11 billion and Abuja Electricity Distribution at N90.73 billion, while smaller distributors like Yola, Kaduna, and Jos recorded the lowest revenues.
Despite the revenue surge, collection efficiency remained a challenge, with only 80.7% of billed amounts successfully collected. This left a gap of N136.36 billion between what customers were billed and what electricity companies actually received. Analysts point to persistent issues such as electricity theft, estimated billing, and aging infrastructure, which continue to strain the sector and frustrate consumers.
Metering remains a major hurdle. Only about 55% of Nigeria’s 12 million registered electricity customers have functional meters, forcing nearly half to rely on estimated bills that consumer groups argue are often inflated. In the quarter under review, distribution companies installed just 228,614 meters, mostly through the government’s Meter Asset Provider program, reflecting slow progress in addressing the country’s metering deficit.
While revenue growth may look promising on paper, experts warn it does little to solve Nigeria’s power crisis, with average electricity generation hovering around 4,000 megawatts for a population exceeding 200 million. Frequent grid collapses and gas supply shortages force many households and businesses to rely on diesel generators, adding heavy costs. Meanwhile, government subsidies for electricity rose to N458.75 billion during the quarter, fueling debate over fiscal sustainability and the need for urgent investment in generation and transmission infrastructure.
source: Business day