KEY POINTS

• Nigeria electricity revenue reached N210 billion in October 2025.
• DisCos failed to collect N45.19 billion of billed power.
• Nigeria electricity revenue gap sustained N48.66 billion subsidy.

Nigeria’s electricity distribution companies collected N210 billion in revenue in October 2025, falling short of the N255.19 billion billed to customers, according to data released Monday by the Nigerian Electricity Regulatory Commission.

The figures, published in NERC’s “Commercial Performance of Distribution Companies (DisCos)” factsheet for October, underscore ongoing structural challenges in Nigeria’s power market, where tariffs, subsidies and weak collections continue to strain sector finances.

The regulator said the 12 DisCos operating nationwide failed to collect N45.19 billion of the invoices issued during the month. The companies covered in the report include Aba, Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Port Harcourt and Yola.

Electricity revenue and billing performance gaps

NERC said electricity supplied to the DisCos in October had a total market value of N303.85 billion. The average allowed tariff stood at N116.25 per kilowatt-hour, while the average revenue actually collected amounted to N95.89 per kilowatt-hour.

The gap between cost reflective tariffs and realised revenue translated into an effective subsidy of N20.36 per kilowatt-hour, highlighting the continued role of government support in keeping the sector operational.

Of the total energy supplied during the month, N48.66 billion worth was not billed to customers, reflecting tariff shortfalls absorbed by the Federal Government. NERC said the government effectively carried that subsidy burden in October 2025.

Electricity revenue and subsidy problems continue

The data also revealed some gains in how well things worked, but there are still gaps. NERC reported an average billing efficiency of 83.99 percent across the DisCos, indicating the share of energy supplied that was successfully billed. Collection efficiency stood at 82.66 percent, while overall recovery efficiency was 82.49 percent.

Industry analysts say the figures illustrate the difficulty of sustaining investments in generation and distribution under current market conditions. Persistent revenue losses, coupled with subsidy obligations, continue to limit cash flows across the electricity value chain.

While recent tariff adjustments have narrowed some gaps, NERC’s data suggest that electricity revenue performance still lags the actual cost of supply, keeping pressure on public finances and complicating efforts to attract private capital into the sector.