The Nigerian Electricity Regulatory Commission, NERC, and experts in the sector appear to be singing a different song over the factors driving the increase in the revenue of electricity distribution companies, DisCos.
While NERC attributed the increase in revenue to what it described as efficiency in revenue collection, experts pinned down to customers’ exploitation.
According to the experts, customers are made to pay for power not consumed.
Meanwhile, electricity Distribution Companies, DisCos, have recorded a huge jump in revenue, hitting N1.713 trillion in nine months, from January to September 2025.
This represents a 27 per cent rise against N1.249 trillion recorded in the corresponding period of 2024.
Also, the latest report of the Nigerian Electricity Regulatory Commission, NERC, on Commercial Performance of the DisCos, showed that total revenue collected by DisCos in September 2025 alone stood at N196.26 billion out of the N241.54 billion total energy bills issued during the period under review, indicating N49.28 billion unpaid bill.
But the revenue trend showed the DisCos’ have recorded steady rise in revenue quarter-on-quarter – N559.3 billion in the first quarter of the year, Q1’25, N573.5 billion in Q2’25, and N581.3 billion in Q3′ 25.
The NERC data also showed rising efficiency in billing and collection of revenue.
The billing efficiency, according to NERC, was 86.43%, while revenue collection efficiency was 81.25%.
Also revenue recovery was high, with 83.45% recovery efficiency.
NERC said DisCos, such as Eko, Abuja, and Ikeja Electric, remained strong performers across billing, collections and recovery efficiency.
Aba, according to the facts sheet, achieved a 102.85 per cent billing efficiency, reflecting improved energy optimisation and legacy recovery.
Benin, Port Harcourt, and Kano posted moderate efficiency levels, while Jos, Kaduna, and Yola continued to trail and show room for improvement.
NERC explained that the “figures give a clear picture of how effectively DisCos are billing, collecting, and recovering revenue, key indicators for strengthening liquidity and improving service delivery across the Nigerian Electricity Supply Industry, NESI.”
Experts react.
However, industry experts seem unhappy with the impressive financial performance of the DisCos, especially at the backdrop of unhappy consumers who are paying the bills.
Commenting on the situation, Energy Economist, Professor Wumi Iledare, said, “The anomaly in Nigeria’s electricity pricing structure is what appears to be driving revenue growth-not efficiency, not improved service delivery, and certainly not fairness.
“First, the estimated billing system is deeply problematic, with cross-subsidies embedded in ways that disproportionately burden low-income households. Those who can least afford it end up paying the most for power they often do not receive.
