Nigeria’s electricity distribution companies (DisCos) have reported combined losses of N2.349 trillion over the past two years, worsening the nation’s already fragile power sector. Billing inefficiencies and weak revenue collection have left the Nigerian Electricity Supply Industry (NESI) in a deep liquidity crisis, with several thermal plants struggling to secure sufficient gas to maintain generation. Data from the Nigerian Electricity Regulatory Commission (NERC) shows losses rose 31.4% from N1.015 trillion in 2024 to N1.334 trillion in 2025, fueled by N649.87 billion in billing issues and N684.28 billion from poor collections.
The financial strain has translated into declining electricity supply nationwide, with outages becoming increasingly frequent and prolonged. Power generation dropped from an average of 4,600 megawatts in 2025 to below 3,500MW in early 2026. Many Generation Companies (GenCos) now operate below capacity due to unpaid debts exceeding N6 trillion, prompting gas suppliers to cut deliveries. As a result, rolling blackouts are affecting homes and businesses, with some communities receiving as little as three hours of electricity daily.
The situation has prompted drastic measures, including the Presidential Villa’s decision to exit the national grid. A new N17 billion solar hybrid mini-grid aims to guarantee uninterrupted power for the seat of government. While officials emphasize energy security, industry leaders like AEDC’s Acting Managing Director Engr Chijoke Okwuokenye argue that with investment in storage and network upgrades, the Villa could have maintained reliable grid power. The move underscores broader doubts about the grid’s stability and the sector’s ability to meet demand.
Consumers are expressing growing frustration over estimated billing and lack of transparency. The Electricity Consumers Association of Nigeria says sharp practices at the distribution level exploit customers, leading many to resist payment. Independent experts attribute disputes and inflated bills to widespread metering gaps. Sage Consulting’s Mr. Bode Fadipe insists comprehensive end-to-end metering is the key to accurate billing and resolving systemic inefficiencies.
The federal government faces increasing pressure to act as sector operators navigate mounting debts and operational shortfalls. Experts warn that without political will and structural reforms, the country risks further blackouts and financial collapse in its electricity sector. Calls for mass metering, greater transparency, and investment in hybrid solutions are intensifying, highlighting the urgent need for sustainable strategies to stabilize Nigeria’s power supply.
source: vanguard