Nigerian DisCos Generate N2.3tn Revenue in 2025 Despite Persistent Power Outages

Nigeria’s electricity distribution companies (DisCos) generated a combined N2.33 trillion in revenue in 2025, even as millions of consumers continued to grapple with erratic power supply, estimated billing, and frequent outages. Data released by the Nigerian Electricity Regulatory Commission (NERC) revealed that the 12 electricity distribution firms recorded a sharp increase in collections during the year, highlighting a widening gap between rising consumer payments and persistent service complaints.

The figure represents a significant increase from the N1.8 trillion recorded in 2024, marking a rise of about N525 billion or 29 per cent year-on-year. The growth in revenue occurred amid tariff adjustments and stronger billing enforcement across the country’s partially deregulated electricity market, where power consumers have increasingly voiced frustration over unreliable electricity supply.

According to NERC’s revenue data, the DisCos collected N553.63 billion in the first quarter of 2025, which rose slightly to N564.71 billion in the second quarter. Monthly collections in the second half of the year remained consistently high, ranging between N190 billion and N210 billion, with October recording one of the highest monthly revenues at N210 billion.

Performance among distribution companies varied, with Eko Electricity Distribution Company posting the strongest revenue recovery rate at 99.45 per cent. Other strong performers included Yola Electricity Distribution Company, Ikeja Electric, and Abuja Electricity Distribution Company, while utilities such as Benin Electricity Distribution Company, Ibadan Electricity Distribution Company, Enugu Electricity Distribution Company, and Port Harcourt Electricity Distribution Company recorded moderate recovery levels.

Despite the rising revenue, many households and businesses across Nigeria say the quality of electricity supply has not improved. Consumer groups argue that higher tariffs and increased collections have yet to translate into better infrastructure, improved metering, or stable power supply. Analysts note that while revenue growth may help improve liquidity in the power sector, meaningful improvements will require simultaneous upgrades in generation, transmission, and distribution capacity to meet Nigeria’s electricity demand of more than 20,000 megawatts, far above the current output that fluctuates between 3,000MW and 5,000MW.

source: punch