Nigerian Discos Revenue Jumps by N610bn Amidst Declining Service Metrics

The Nigerian power sector continues to present a perplexing paradox: Electricity Distribution Companies (Discos) reported a substantial revenue increase of over N610 billion in 2025, pushing total collections to an impressive N2.31 trillion. This surge in revenue, particularly following the implementation of the ‘Band A’ policy, suggests consumers are meeting their payment obligations. However, this financial uptick stands in stark contrast to the persistent declines observed in critical operational metrics across the power value chain, raising serious questions about service delivery and efficiency.

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Electricity Distribution Companies (Discos) in Nigeria recorded up to N610 billion increase in revenue in 2025, despite persistent declines in key performance indicators across the power value chain, raising fresh concerns about the disconnect between consumer payments and service delivery.

An analysis of data from the Nigerian Electricity Regulatory Commission (NERC) reveals a troubling trend. While Discos collected N2.31 trillion against N3.025 trillion in issued bills, a collection efficiency of 77.38 percent, a staggering N684.41 billion remains uncollected. This highlights ongoing liquidity challenges within the Nigerian Electricity Supply Industry (NESI). The situation is further exacerbated by declining power generation and plant availability. NERC's report indicates a drop in average available generation capacity, with a significant number of power plants recording reduced output due to technical and operational issues.

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An analysis of the commercial performance of the Discos revealed that while they issued a total of N3.025 trillion in electricity bills in 2025, only N2.311 trillion was recovered, translating to a collection efficiency of 77.38 per cent.

From a Nigerian perspective, this scenario is all too familiar. We are paying more for electricity, yet the quality of service and reliability remain critically low. The disconnect between increased revenue collection and diminished operational performance suggests that the benefits of consumer payments are not translating into tangible improvements in power supply. This raises concerns about accountability and the effective utilization of funds collected. While hydropower plants showed some seasonal improvement, the overall picture for generation capacity is concerning, underscoring the need for urgent reforms that prioritize service delivery and infrastructure development alongside revenue collection.

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This left an outstanding N684.41 billion in uncollected revenue, underscoring lingering liquidity challenges within the Nigerian Electricity Supply Industry (NESI).