Electricity distribution companies (DisCos) failed to bill customers for N76.08 billion worth of electricity supplied in May as billing efficiency across the power distribution sector declined sharply, according to the latest commercial performance report released by the Nigerian Electricity Regulatory Commission (NERC).
The commission’s May factsheet showed that the 11 DisCos received electricity valued at N328.95 billion during the month but billed customers only N252.87 billion, leaving a billing shortfall of N76.08 billion, reflecting over 30 percent of untapped revenue.
The report showed that billing efficiency fell to 76.87 percent in May from 83.32 percent recorded in April, indicating that a smaller proportion of electricity supplied was translated into customer bills.
NERC also reported a decline in revenue collection during the month, with DisCos collecting N208.15 billion, compared with N302.96 billion recorded in April.
Despite the drop in revenue, the commission said collection efficiency improved slightly to 82.32 percent in the review period from 80.66 percent in the previous month, suggesting that DisCos recovered a higher proportion of the amount billed to customers.
According to the regulator, the industry recorded an overall recovery efficiency of 77.31 percent during the month, with DisCos collecting an average of 96.16 kobo for every kilowatt-hour (kWh) of electricity supplied, compared with the allowed average tariff of N124.39 per kWh.
The report ranked Ikeja Electricity Distribution Company as the best-performing utility in terms of recovery efficiency at 94.63 percent, followed by Eko DisCo at 91.54 percent and Abuja DisCo at 84.84 percent.
The commercial performance data comes as the power sector continues efforts to improve revenue assurance through increased metering and reductions in aggregate technical, commercial and collection (ATC&C) losses.
In a separate report, NERC said the country’s electricity distribution companies deployed 227,559 meters in March and April under various metering programmes.
According to the commission, 111,654 customers were metered in April, following the installation of 115,905 meters in March, as DisCos continued efforts to reduce estimated billing and improve revenue collection.
The latest figures underscore the persistent commercial challenges facing the electricity distribution segment, where a significant portion of energy supplied to customers is either not billed or not fully recovered, despite ongoing metering efforts and reforms aimed at strengthening the financial viability of the power sector.
In June, the federal government unveiled plans to deploy seven million electricity meters across the country as part of a major reform programme aimed at ending estimated billing, improving revenue collection and restoring confidence in Nigeria’s struggling power sector.
Olu Verheijen, special adviser to the President on Energy, said at an energy convening that the metering programme is expected to strengthen transparency in electricity billing, improve collections by distribution companies and support efforts to make the power sector financially sustainable.
According to her, the seven million-meter rollout will be implemented through a presidential metering initiative and a separate World Bank-backed programme designed to accelerate meter deployment nationwide and enable DisCos to capture the real cost of electricity used by consumers.
Feyishola Jaiyesimi is a journalist at BusinessDay Media with over two years reporting experience. She began her journalism career as an agricultural reporter and now covers the energy sector, including oil, gas, electricity, environment, and renewables. She has been selected for professional training by the US Consulate, Lagos. She is a 2025 Dataphyte Biodiversity Reporting Fellow. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.
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