Nigeria’s electricity distribution companies (DisCos) recorded an aggregate billing efficiency of 82.03% in the fourth quarter of 2025, even as the sector posted N174.12 billion in billing shortfalls. This is according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).

The figures highlight ongoing inefficiencies in Nigeria’s power distribution chain, where a significant share of supplied electricity does not translate into revenue. The report underscores persistent structural and commercial challenges affecting the financial performance of the electricity distribution segment.

NERC data shows a widening gap between energy supplied and revenue billed in Q4 2025. The naira value of the total energy supplied by all DisCos in 2025/Q4 was N969.19 billion, and the naira value of the total energy billed was N795.06 billion, which translates to a billing efficiency of 82.03%.

Comparatively, the naira value of the total energy supplied by all DisCos in 2025/Q3 was N854.53 billion, and the naira value of the total energy billed was N706.61 billion, which translated to a billing efficiency of 82.69%. This means that at an aggregate level, DisCos recorded a 0.66pp decrease in billing efficiency between 2025/Q3 and 2025/Q4, NERC noted. Billing losses for the quarter totalled N174.12 billion.

DisCos recorded an estimated N44.27 billion revenue loss in October 2025 due to persistent gaps in billing and revenue collection. The figures show that despite receiving electricity worth over N300 billion from the national grid, DisCos were unable to fully bill and collect from end-users, reinforcing concerns about efficiency and sustainability in Nigeria’s electricity value chain. Nigeria’s electricity distribution sector has long struggled with inefficiencies that affect revenue collection and service delivery.