— Fail to Account for 4,102.06GWh of Energy Taken from Grid
By Obas Esiedesa, Abuja
Electricity Distribution Companies (DisCos) recorded a collection surplus of N493.59 billion in the first nine months of 2025, despite widespread complaints of poor electricity supply across the country, latest industry data have shown.
Figures released by the Nigerian Electricity Regulatory Commission (NERC) revealed that the DisCos collected a total of N1.688 trillion from customers during the period but remitted only N1.194 trillion to the electricity market.
The surplus, according to industry sources, was largely driven by a Federal Government directive that allows the DisCos to remit just under 40 per cent of their energy off-take from the national grid.
NERC reports covering the first three quarters of 2025 showed that the DisCos received a combined invoice of N1.249 trillion from the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO). However, only N1.194 trillion was remitted, leaving an outstanding balance of about N55 billion.
A breakdown of the data showed that in the first quarter of 2025, the DisCos recorded a combined revenue collection of N553.63 billion but remitted N414.26 billion, leaving a surplus of N139.37 billion, despite failing to meet payment obligations of N432.13 billion.
In the second quarter, the companies posted a surplus of N165.51 billion after collecting N564.71 billion and remitting N399.20 billion out of an invoice of N417.35 billion from NBET and the MO.
Similarly, in the third quarter, the DisCos recorded a surplus of N188.71 billion, having collected N570 billion from consumers and remitted N381.29 billion, despite an invoice of N400.48 billion.
Beyond the financial discrepancies, NERC also reported significant gaps in energy accounting. The DisCos failed to account for 4,102.06 gigawatt-hours (GWh) of energy taken from the national grid during the period.
According to the regulator, the total energy off-take by DisCos in the first three quarters of 2025 was 23,342.38GWh, out of which only 19,240.28GWh was accounted for. The highest unaccounted energy loss occurred in the first quarter with 1,537.08GWh, followed by 1,374.61GWh in the second quarter and 1,190.37GWh in the third quarter.
NERC explained that energy accounting efficiency (EAE) measures how effectively DisCos account for the energy they receive at their trading points, defined as the proportion of energy billed to customers relative to the total energy supplied over a given period.
“All things being equal, a high correlation between EAE and commercial billing efficiency is expected. However, due to the Service-Based Tariff (SBT) regime in the Nigerian Electricity Supply Industry (NESI) and the wide tariff differentials across customer bands, this correlation is not always guaranteed,” the Commission stated.
The regulator also reported inefficiencies in the billing processes of the DisCos, which it said cost the electricity market an estimated N505.57 billion in lost revenue due to failure to properly bill customers.
Commenting on the development, Executive Director of PowerUp Nigeria, Mr. Adetayo Adegbemle, described the situation as a paradox, questioning how DisCos deploy surplus revenues while service quality remains poor.
“Most DisCos collect more than their minimum obligations, yet service quality remains poor, with low metering levels and frequent outages. The surplus funds often disappear into opaque operating expenses and debt servicing,” he said.
Adegbemle further observed that only about 54 per cent of electricity consumers are currently metered, despite annual surplus collections of over N200 billion by the distribution companies.
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