Nigeria's DisCos recorded ₦360bn revenue gap after collecting ₦1.12tn from ₦1.49tn billed in H1 2025

Key Takeaways

  • DisCos billed approximately ₦1.49 trillion but collected only ₦1.12 trillion in H1 2025.
  • Ikeja and Eko DisCos generated the highest revenues, collecting ₦206.22 billion and ₦210.59 billion, respectively.
  • Revenue collection gaps remain significant, with Jos, Kaduna, and Yola posting the weakest collection performances.
  • The wide gap between billings and actual collections suggests persistent challenges in customer payment compliance, metering, and distribution efficiency.

Data from the Nigerian Electricity Regulatory Commission (NERC) shows that in H1 2025, Nigeria’s DisCos billed customers approximately ₦1.49 trillion but recovered ₦1.12 trillion, leaving a sizable ₦360 billion gap.

This indicates ongoing revenue leakages driven by low collection efficiency, weak metering coverage, and customer underpayment. While some DisCos maintain relatively strong performance, revenue recovery remains uneven across the sector.

Ikeja and Eko remain the strongest performers, each collecting over ₦200 billion in the first half of the year. Abuja and Ibadan follow, though with significantly lower collection totals. At the lower end, Jos, Kaduna, and Yola collected far below their billed amounts, reflecting deeper structural issues.

Source:

Nigeria Electricity Regulatory Commission (NERC)

Period:

H1 2025
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Electricity generation in Africa: fossil still leads 2.5-to-1, but the gap is closing
  • Fossil fuels still generate 2.5x more electricity than non-fossil sources, though the gap has narrowed from a 2007 peak of 4.5x.
  • South Africa and Egypt together account for all of Africa's nuclear power and 59% of its non-hydro renewables.
  • Hydropower, the largest non-fossil source at 188.6 TWh, tells a different geographic story, with 91% generated outside South Africa and Egypt, mainly in Eastern, Middle, and Western Africa.
  • Gas still leads at 403.9 TWh, but its growth slowed to 0.8% in 2025 versus 11.9% growth for non-fossil sources.
Non-fossil generation overtook coal in 2023, and the gap has widened every year since
  • Non-fossil generation overtook coal in 2023, with the gap reaching 57.5 TWh in 2025.
  • Coal generation fell to 225.3 TWh, below its 262.6 TWh peak in 2007.
  • Hydropower dominates non-fossil generation, producing 188.6 TWh in 2025.
  • Fossil fuels still dominate, generating 703.2 TWh versus 282.8 TWh from non-fossil sources.
Egypt overtook South Africa's electricity generation in 2024 and extended its lead in 2025
  • Africa’s share of global electricity generation rose only from 2.6% in 1985 to 3.1% in 2025.
  • Africa’s electricity generation increased 283% over the past 40 years.
  • Egypt overtook South Africa as Africa’s largest electricity producer in 2024.
  • Egypt generated 242.4 TWh in 2025, up from 30.3 TWh in 1985.
  • South Africa generated 231.1 TWh in 2025, down from its 263.5 TWh peak in 2007.
  • Egypt and South Africa accounted for 24.5% of Africa’s electricity generation in 2025.
East African countries accounted for seven of the continent's 15 biggest electricity access gains in 23 years
  • Eswatini recorded Africa’s largest electricity access gain, rising by 66 percentage points from 2000 to 2023.
  • Kenya and Rwanda followed with gains of 61 pp and 58 pp, respectively.
  • East African countries accounted for 7 of Africa’s top 15 electricity access improvements.
  • Comoros, Ghana and Cape Verde reached very high access levels by 2023, at 90%, 90% and 99% respectively.
  • Nigeria’s electricity access improved by 18 percentage points, from 43% in 2000 to 61% in 2023.
  • Despite that improvement, Nigeria remained outside Africa’s top 15 gainers over the period.
  • Some countries were absent from the ranking because they had already reached high access levels by 2000.
Ibadan and Enugu DisCos together accounted for nearly two million unmetered customers
  • Nigeria still had about 5.25 million unmetered electricity customers across DisCos.
  • The 11 DisCos reported in Q4 2025 had 5.20 million unmetered customers.
  • Nigeria’s reported metering rate stood at 57.3% as of Q4 2025.
  • Ibadan and Enugu had the largest gaps, with nearly two million unmetered customers combined.
  • Ibadan alone had 1.18 million unmetered customers, the highest of any DisCo.
  • Ikeja and Eko had the strongest metering performance, both at about 86%.
  • At the 2025 pace of meter additions, closing the current gap could take close to seven years.
Despite allocating more funds than in 2020, Nigeria's defence budget share falls back to 9% in 2026, matching the 2020 low
  • Nominal spending surged, but inflation and naira depreciation eroded real gains. From ₦921 billion in 2012 to ₦6.57 trillion in 2025, the absolute figure may seem dramatic, but Nigeria's security challenges intensified over the same period.
  • Defence commanded over 21% of the budget in 2013. From 2024 to 2026, that figure has fallen below 14%, with 2026 hitting a historic low of 9.3%.
  • Boko Haram, banditry, and separatist tensions peaked in 2020, resulting in a cut that saw defence's share fall to just 9.2%, the lowest on record at that point.
  • The jump to ₦6.57trn (13.2%) in 2025 marks the sharpest year-on-year absolute increase in the dataset. But 2026 reversed this again, with the rate dropping to 9.3%.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved