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NERC: Discos Billed Customers N742.3bn, Collected N564.7bn Revenue in Q2
Electricity Distribution Companies (Discos) in Nigeria billed a total of N742.34 billion to their customers in Q2,2025, but were only able to collect N564.71 billion during the period under consideration, fresh data from the Nigerian Electricity Regulatory Commission (NERC) has shown.
Besides, collection efficiency, which is the strength of Discos in recovering billed revenue from customers, indicated a mild improvement, rising to 76 per cent compared with 74 per cent in the previous quarter, the data indicated.
This means that Discos collectively recovered a little over three-quarters of the value they charged households and businesses for electricity consumed, recording a deficit collection of about N177.6 billion during the period under review.
Eko Disco led the pack of performers with strong collection figures, with N106 billion collected from N120 billion billed, followed by Ikeja Disco which recorded N105 billion in revenue out of N127 billion billed, while Abuja Disco followed with N89 billion collected from the N116 billion it billed.
In the same vein, Port Harcourt Disco recorded the strongest quarter-on-quarter gain, expanding its collection efficiency to 70 per cent, marking a 9.77 per cent improvement relative to Q1. The rebound is notable given the utility’s long-standing operational and network constraints.
In contrast, Jos Disco continued to show weak customer repayment behaviour, achieving only 44 per cent collection efficiency. Kaduna and Yola also posted some of the lowest outcomes, collecting just N13 billion and N9 billion respectively, compared to their billed amounts of N26 billion and N16 billion.
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An analysis of the trend showed that Discos with higher metering penetration tended to enjoy stronger repayment rates because customers perceive the billing system as more transparent and aligned with actual consumption. Conversely, regions heavily dependent on estimated billing often showed resistance to payments, leading to perennial revenue leakages.
Improvements in revenue collection appeared to be offset by persistent metering gaps, with the metering segment remaining a weak point in the performance chain, despite the federal government’s recent attempts to close the gap.
According to NERC, the overall metering rate stood at 54.3 per cent in the quarter under review, meaning that almost half of all electricity customers continue to rely on estimated billing. Out of Nigeria’s 11.8 million registered electricity customers, only 6.42 million were metered as at Q2, 2025, the report said.
Although Discos installed 225,631 meters during the quarter, the pace was still insufficient to significantly shift the national metering deficit. The figures showed modest additions rather than structural progress toward full coverage.
Ibadan Disco, one of the country’s largest networks, installed the highest number of new meters, adding 45,000 customers during the quarter. Ikeja (39,000) Abuja (32,000), Benin Disco (28,000) Eko (21,000), Enugu (17,000), followed behind with smaller but notable deployments.
Ikeja Electric (IE), which historically maintains one of the highest metering penetration levels, recorded the strongest overall metering rate at 85 per cent. Meanwhile, Yola, Jos and Kaduna Discos, which have long lagged behind their peers, maintained the lowest coverage levels, with 29 per cent, 30 per cent and 33 per cent, underscoring lingering disparities in service delivery.
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However, despite the persistent metering gap, the remittance performance of Discos to the Nigerian Bulk Electricity Trading Company (NBET) and the Market Operator (MO) showed some resilience.
The market remittance rate stood at 96.65 per cent in Q2, slightly lower than the previous quarter, but still representing a generally stable performance in fulfilling payment obligations to the upstream segment of the value chain. Total invoices issued stood at N417.35 billion, while Discos remitted N399.20 billion, marking a 3.64 per cent decline from Q1.
According to the data, several Discos maintained perfect or near-perfect remittance compliance. Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Kaduna, and Port Harcourt Discos recorded 100 per cent remittance. However, Jos Disco again fell behind, remitting just 62 per cent of its invoice value. Yola Disco, which operates under a different contractual framework due to its post-conflict status, posted the lowest contribution in absolute financial terms.
Besides, during the quarter, NERC stated that it issued 66 regulatory instruments in Q2, including 37 new orders; six mini-grid permits and registrations; eight new licences; one captive generation permit and 14 new Meter Service Provider (MSP) and Meter Asset Provider (MAP) certificates.
In the same vein, Nigeria’s electricity distribution sector posted another challenging quarter in terms of Aggregate Technical, Commercial and Collection (ATC&C) loss targets for Q2, 2025.
According to the report, the industry average ATC&C loss stood at 38 per cent, significantly higher than the NERC approved average target of 21 per cent. ATC&C losses represent the portion of energy supplied that is not paid for, and any performance above target is borne financially by the Discos.
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Eko emerged as the only Disco to beat its target, recording an actual loss of 15 per cent against a target of 17 per cent, marking it the best-performing utility in the period under review.
On the opposite end, Kaduna again posted the worst performance, with losses soaring to 71 per cent, a staggering 50 percentage points above its target. It was closely followed by Jos, which recorded 62 per cent, far higher than its 26 per cent benchmark.
Other major underperformers included YEDC (66 per cent), KEDC (44 per cent), IBEDC (43 per cent), BEDC (40 per cent), and PHED (41 per cent), all recording results significantly above their targets.
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