Nigeria's power sector faces N1.36tn revenue shortfall in 2025 due to billing and collection inefficiencies

This deficit resulted from distribution companies DisCos failing to bill consumers for N694.8 billion worth of electricity and not collecting N669.5 billion from issued bills. The report indicates that DisCos supplied electricity valued at N3.68 trillion but billed customers for only N2.99 trillion, achieving an 81.14 percent gross billing efficiency. Of the amount billed, only N2.32 trillion was collected, leading to a 77.60 percent collection efficiency.

Former senator and businessman Ben Murray-Bruce criticized the sector's performance, stating that the 2013 privatization failed to deliver promised investment and reliability. He argued that investors lacked the financial capacity to rebuild and expand assets after acquisition. NERC's findings show that the weighted average aggregate technical, commercial, and collection loss across DisCos was 37.03 percent in 2025, exceeding the 20.54 percent target.

Murray-Bruce highlighted the issue of unmetered customers, with 5.20 million, or 42.73 percent, of active registered customers remaining unmetered by December 2025. He also noted that the Nigerian Bulk Electricity Trading Company and the market operator issued N1.72 trillion in invoices to DisCos, but only N1.632 trillion was remitted, resulting in an N89.58 billion market shortfall. The Fed