The total revenue collected by Electricity Distribution Companies (DisCos) increased to N570.25 billion in the third quarter (July-September) of 2025, representing 22.19% increase from N466.69 billion recorded in same period of 2024.
The total revenue also indicates an increase of N5.54 billion, when compared to N564.71 billion revenue recorded in the second quarter (Q2) of 2025.
BusinessDay’s analysis of the Nigerian Electricity Regulatory Commission quarterly report, which was released on Tuesday, however, shows that the total energy billed to customers dropped to 6,158.54GWh from 6,449.82GWh billed in Q2.
Ikeja DisCo recorded highest revenue (N117.08 billion) in the period, followed by Eko DisCo (N101.11 billion), Abuja DisCo (N90.73 billion) and Ibadan DisCo (N60.36 billion).
Yola, Kaduna and Jos DisCos recorded the least revenues over the period, with N9.24 billion, N12.28 billion and N16.92 billion respectively.
The total revenue collected by all DisCos in the period also represents a N136.36 billion shortfall, from 706.61 billion billed to customers. This translates to a collection efficiency of 80.70%.
On metering, the report shows that a total of 228,614 meters were installed in Q3, representing an increase when compared to the 226,959 meters installed in Q2. During the quarter, 176,302 meters were installed under the MAP framework, while 44,104 meters were installed under the Vendor Financed framework.
Also, 7,902 meters were installed under the Distribution Sector Recovery Program (DISREP), with 175 meters installed under the MAF framework, and 131 meters installed under the DisCo Financed framework.
As of the end of September 2025, Nigeria was at 55.37 percent in terms metering of electricity customers, as the report shows that only 6,661,564 out of the total 12,030,315 active registered customers in the electricity supply industry were metered.
The report also indicated that due to the absence of costreflective tariffs across all DisCos, the Government incurred a subsidy obligation of N458.75 billion in the period.
In the absence of cost-reflective tariffs, the government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff subsidies. For ease of administration, the subsidy is only applied to the generation cost payable by DisCos to NBET at source in the form of a DisCo’s Remittance Obligation (DRO).
The DRO represents the total Generation invoice that is billed to the DisCos by NBET based on what the allowed DisCo tariffs can cover. Furthermore, DisCos are expected to remit 100 percent of the invoices received from the market operators for transmission and administrative service costs.
SOURCE: Businessday
