ABUJA, Nigeria (VOICE OF NAIJA)- Nigeria’s electricity distribution companies generated a combined revenue of about N2.33tn in 2025, even as consumers continued to raise concerns over poor service delivery, estimated billing, and frequent power outages nationwide.
An analysis of monthly revenue data from the Nigerian Electricity Regulatory Commission showed that the 12 electricity distribution companies collected a total of N2.325tn from customers during the year.
The amount marks a notable increase compared to the approximately N1.8tn recorded in 2024, representing a rise of about N525bn, or roughly 29 per cent year-on-year.
The increase in collections occurred amid persistent complaints from electricity users about unreliable power supply and rising tariffs within Nigeria’s partially deregulated electricity market.
Data from the regulator indicated that the distribution companies earned a combined N553.63bn in the first quarter of 2025.
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Revenue collections rose slightly in the second quarter to N564.71bn, reflecting stronger billing practices and improved tariff enforcement by the utilities.
Monthly figures for the second half of the year showed consistently high collections. In July 2025, the companies recorded N193.96bn in revenue, which declined slightly by N2.85bn, or about 1.5 per cent, to N191.11bn in August, according to the regulator’s factsheet.
Revenue, however, increased again in subsequent months.
In September, collections rose to N196.26bn, representing an increase of N5.15bn, or about 2.7 per cent, compared to August.
The upward trend continued in October when collections climbed to N210bn, an increase of N13.74bn, or roughly seven per cent, from September.
Revenue dropped slightly in November to N208.78bn, reflecting a decline of N1.22bn, or about 0.6 per cent, from October.
By December, collections fell further to N207bn, representing a decrease of N1.78bn, or around 0.9 per cent compared to November.
The data showed that monthly electricity payments by consumers largely ranged between N190bn and N210bn in the second half of the year.
The commission also noted that December billing declined by four per cent when compared with the N269.43bn billed in November.
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Despite this, collection efficiency improved marginally, rising to 80.22 per cent in December from 77.49 per cent in the previous month.
The factsheet also showed that the total value of energy received by the distribution companies in December stood at N309.65bn, representing a 9.54 per cent decline from N342.29bn recorded in November.
According to NERC, Eko Electricity Distribution Company recorded the strongest revenue recovery performance at 99.45 per cent, reflecting near-full recovery of allowed revenues.
“Yola (87.89 per cent), Ikeja (85.32 per cent), and Abuja (84.43 per cent) also delivered strong recovery performance,” the commission said. “Benin (71.36 per cent), Ibadan (73.19 per cent), Enugu (73.50 per cent), and Port Harcourt (79.29 per cent) recorded moderate recovery levels.”
The commission explained that the figures offer insights into how efficiently distribution companies are billing customers, collecting payments, and recovering revenue key factors for improving liquidity and enhancing service delivery across the Nigerian Electricity Supply Industry.
The increase in revenue comes despite widespread criticism of the distribution companies’ service quality.
Many households and businesses across the country still experience erratic electricity supply, frequent feeder outages, and disputes over estimated billing.
Consumer advocacy groups have repeatedly accused the companies of focusing more on revenue collection while failing to invest sufficiently in network upgrades and metering.
Within Nigeria’s electricity market structure, distribution companies represent the final link in the value chain, responsible for delivering electricity from the national grid to homes and businesses while also collecting payments from consumers.
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Analysts attribute the growth in revenue partly to tariff adjustments introduced in recent years, particularly the implementation of cost-reflective pricing for certain customer categories.
These reforms were aimed at improving liquidity in the power sector, which has long struggled with revenue shortfalls affecting investments in generation and transmission.
However, critics argue that the tariff increases have not resulted in corresponding improvements in electricity supply.
Nigeria’s electricity sector has faced ongoing structural challenges since its privatisation in 2013.
Although private investors took over the distribution companies, the sector continues to grapple with infrastructure deficits, high technical losses, inadequate metering, and liquidity challenges.
Power generation in Nigeria often fluctuates between 3,000MW and 5,000MW, far below the estimated national demand of more than 20,000MW for Africa’s most populous country.
Frequent grid disturbances, gas supply shortages to power plants, and ageing transmission infrastructure have further hindered the sector’s performance.
Despite these difficulties, electricity payments from consumers continue to rise each year, raising concerns among stakeholders about the increasing financial pressure on households and businesses.
Energy experts warn that unless improvements in power generation, transmission capacity, and distribution networks occur simultaneously, rising revenue collections alone may not translate into better electricity supply for Nigerians.