Business
Electricity Consumers Owe Discos N54bn in February – NERC
Nigerian electricity consumers failed to remit N54.18 billion to distribution companies (Discos) for power consumed in February 2025, according to the latest data from the Nigerian Electricity Regulatory Commission (NERC).
The NERC Factsheet for February reveals that while the 12 Discos billed a total of N245.93 billion for electricity supplied during the month, they only collected N191.75 billion—representing a 77.9% collection efficiency. This marks a 6.56% improvement compared to January.
During the same period, Discos received a total of 2,583.19 gigawatt-hours (GWh) of energy and billed 2,137 GWh to customers, translating to a billing efficiency of 82.73%, a slight increase from the previous month.
The average allowed tariff in February was N116.18 per kilowatt-hour (kWh), but actual collections averaged N88.21/kWh, reflecting a 75.9% recovery rate—up by 10.5% from January.
Aba Power had the highest allowed tariff at N200.88/kWh but collected only N127.58/kWh on average. The company billed customers N6.44 billion but recovered just N3.47 billion, yielding the lowest collection efficiency among Discos at 53.9%.
Conversely, Abuja Electricity Distribution Company recorded the highest collection efficiency at 89.03%, having recovered N31.7 billion of its N35.67 billion billings. It was closely followed by Eko Disco with an 88.76% efficiency, collecting N36.6 billion of N41.24 billion billed.
Other notable performances include Enugu Disco, which billed N17.95 billion and collected N15.88 billion (88.47% efficiency); Ibadan Disco, which billed N26.88 billion but recovered N19.28 billion (71.72%); and Ikeja Disco, which recovered N33.35 billion of the N41.18 billion billed (81% efficiency).
Despite these improvements, NERC noted that commercial losses and low revenue recovery continue to trouble investors in the power sector. The lack of widespread metering remains a key issue, with over seven million customers still unmetered and reliant on estimated billing—a system often criticized for inaccuracy and disputes.
The regulator recently sanctioned eight Discos for overbilling, highlighting growing concerns about transparency and consumer protection.
In contrast, mini-grid operators, under the purview of the Rural Electrification Agency, are reportedly performing better. REA Managing Director Abba Aliyu said metering all customers in mini-grids has led to over 95% collection efficiency, showing what’s possible with proper infrastructure and accountability.