Electricity distribution companies in Nigeria generated a combined revenue of about N2.33tn in 2025, despite persistent consumer complaints over poor service delivery, estimated billing, and frequent power outages.
An analysis of monthly revenue data from the Nigerian Electricity Regulatory Commission showed that the 12 electricity distribution companies operating in the country earned a total of N2.325tn from electricity customers during the year.
The figure represents a significant increase compared with the roughly N1.8tn recorded in 2024, reflecting a rise of about N525bn, or 29 per cent year-on-year.
The increase in revenue comes at a time when many consumers continue to express dissatisfaction with electricity supply under Nigeria’s partially deregulated power market.
According to the regulator’s data, the distribution companies collectively generated N553.63bn in the first quarter of 2025. Revenue collections rose slightly in the second quarter to N564.71bn, driven largely by stronger billing and improved tariff enforcement.
Monthly data for the second half of the year also showed sustained high collections. In July 2025, the companies recorded revenue of N193.96bn, which declined slightly to N191.11bn in August.
Collections later rebounded, rising to N196.26bn in September before increasing further to N210bn in October.
Revenue, however, dipped marginally in the final months of the year. In November, collections stood at N208.78bn before dropping to N207bn in December.
Despite the decline in billing, collection efficiency improved in December, rising to 80.22 per cent from 77.49 per cent recorded in November.
The commission also reported that the total value of electricity received by the distribution companies in December was N309.65bn, representing a decline from N342.29bn recorded in November.
Among the distribution companies, Eko Electricity Distribution Company recorded the strongest revenue recovery performance at 99.45 per cent, indicating near-full recovery of its allowed revenues.
Other strong performers included Yola Electricity Distribution Company with 87.89 per cent recovery, Ikeja Electricity Distribution Company at 85.32 per cent, and Abuja Electricity Distribution Company at 84.43 per cent.
Meanwhile, Benin Electricity Distribution Company recorded 71.36 per cent recovery, Ibadan Electricity Distribution Company posted 73.19 per cent, Enugu Electricity Distribution Company achieved 73.50 per cent, while Port Harcourt Electricity Distribution Company recorded 79.29 per cent.
The commission said the figures provide insight into how effectively distribution companies bill and recover payments from electricity consumers—key indicators for improving liquidity within the Nigerian Electricity Supply Industry.
However, the rising revenue has not silenced criticism from consumers and advocacy groups, many of whom continue to complain about erratic power supply, feeder outages, and disputes over estimated billing.
Consumer groups have also accused some distribution companies of focusing more on revenue collection while failing to invest sufficiently in network upgrades and metering infrastructure.
Under Nigeria’s electricity market structure, distribution companies serve as the final link in the power value chain, responsible for delivering electricity from the national grid to homes and businesses and collecting payments from consumers.
Industry analysts attribute the surge in revenue partly to tariff adjustments introduced in recent years, including cost-reflective pricing for certain categories of electricity users.
These reforms were aimed at improving liquidity in the power sector, which has long faced financial challenges affecting generation and transmission investments.
Despite these measures, Nigeria’s electricity sector continues to struggle with major structural challenges, including limited generation capacity, ageing infrastructure, gas supply constraints, and transmission bottlenecks.
Power generation in the country typically fluctuates between 3,000MW and 5,000MW, far below the estimated demand of more than 20,000MW for Africa’s most populous nation.
Energy experts warn that unless improvements occur simultaneously across generation, transmission, and distribution networks, higher revenue collections alone may not translate into better electricity supply for Nigerians.
