Electricity distribution companies operating on Nigeria’s national grid recorded a N51.17 billion revenue shortfall in December 2025, according to the Nigerian Electricity Regulatory Commission.
The figure represents the gap between electricity billed to customers and actual collections, as disclosed in the regulator’s December commercial performance factsheet published on Saturday.
The country’s 11 distribution companies billed customers N258.66 billion during the month but collected only N207.49 billion, resulting in a collection efficiency of 80.22 per cent.
The distribution companies received electricity worth N309.65 billion from the national grid, with only N258.66 billion worth successfully billed to customers, translating to a billing efficiency of 83.53 per cent.
The actual average revenue realized by the companies stood at N98.97 per kilowatt hour, compared to an allowed average tariff of N124.30 per kilowatt hour, bringing revenue recovery efficiency to 79.62 per cent.
Abuja Electricity Distribution Company recorded the highest revenue collection, recovering N38.11 billion out of N46.68 billion billed for 81.64 per cent collection efficiency.
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Ikeja Electric followed with N36.20 billion recovered from N43.41 billion billed, representing 83.38 per cent collection efficiency, while Eko Electricity Distribution Company posted one of the strongest performances at 91.79 per cent.
In northern Nigeria, Kano Electricity Distribution Company achieved 57.45 per cent collection efficiency, while Jos Electricity Distribution Company recorded the lowest at 42.92 per cent, collecting only N5.43 billion from N12.67 billion billed.
Data for Kaduna Electricity Distribution Company was not available, with the regulator attributing the absence to an ongoing upgrade of the company’s billing system.
Revenue shortfalls in the distribution segment cascade across Nigeria’s electricity value chain, affecting power generation and transmission companies that depend on distributor payments.
The regulator has consistently emphasized metering as a key solution to revenue leakages and reaffirmed its commitment to enforcing market rules and strengthening regulatory oversight.
For the third quarter of 2025, distribution companies generated N570.25 billion from total bills of N706.61 billion, representing 80.70 per cent collection efficiency, an improvement from 76.07 per cent in the second quarter.
