Power sector records N49bn revenue gap as Ikeja leads, Jos lags
Liquidity challenges in Nigeria’s electricity market persisted in July 2025, as the country’s 11 distribution companies (DisCos) and Aba Power Limited Electric (APLE) posted a combined N49.18 billion revenue shortfall, according to the Nigerian Electricity Regulatory Commission (NERC).
The figure, captured in NERC’s July 2025 Commercial Performance Factsheet, showed a modest improvement from the N55.74 billion shortfall recorded in June 2025, but still underscores deep structural inefficiencies in revenue recovery across the sector.
Ikeja Electric topped the performance chart with a 102.05 per cent collection efficiency, billing N40.03 billion and collecting N40.84 billion, driven by arrears recovery and current charges.
Eko DisCo followed with an 86.56 percent efficiency, collecting N33.54 billion from N38.75 billion billed, while Benin DisCo achieved 95.19 percent, realising N15.13 billion from N17.77 billion billed.
Other strong performers included Ibadan DisCo, which recorded 82.81 percent efficiency with N20.90 billion collected from N25.24 billion billed, and Abuja DisCo, which posted 80.26 percent, collecting N30.44 billion from N37.93 billion billed.
Read also: Lagos licences new electricity distribution firms to replace Eko, Ikeja DisCos
In the mid-range, Enugu DisCo and Port Harcourt DisCo reported efficiencies of 78.34 percent and 76.07 percent, respectively, while Yola DisCo achieved 67.80 percent.
At the bottom of the ranking, Aba DisCo managed 61.81 percent, Kano DisCo 58.61 percent, and Kaduna DisCo 45.41 percent. Jos DisCo had the weakest showing, collecting just N4.59 billion out of N11.81 billion billed, representing a 38.95 percent efficiency rate, the lowest in the sector.
Commenting on the figures, Adetayo Adegbemle, Executive Director, PowerUp, cautioned that the results represent only about 40 percent of the energy delivered to DisCos, as the remainder is treated as a tariff shortfall to be covered by the Federal Government.
He warned that the sector’s sustainability remains precarious, “If DisCos are struggling to meet obligations on just 40 percent, their survival would be in serious doubt once tariff shortfall payments are removed and they are required to recover 100 percent of their Collection Rate Target (CRT),” Adegbemle said.
According to him, the CRT stands at N210 per kWh, while the average allowed tariff is N116 per kWh, and the average recovery rate is N89 per kWh.
Some DisCos, he added, are recovering as little as N30 to N41 per kWh, highlighting the persistent inefficiency in collections despite ongoing regulatory reforms.
Industry analysts say the widening gap between energy billing, collection, and actual cost recovery highlights the fragile financial state of Nigeria’s power sector, raising concerns about its long-term sustainability without significant tariff adjustments and enforcement of performance standards.
