Abuja — Electricity Distribution Companies (Discos) in Nigeria have posted a record revenue of over N1.51 trillion in the first eight months of 2025, and are underway to significantly exceed the N2 trillion mark by the end of this year.
A THISDAY analysis of data from the Nigerian Electricity Regulatory Commission (NERC), showed that the amount is over N460 billion increase compared to between January and August 2024.
A breakdown of the total revenue for the first eight months of 2025, showed that the Discos posted N178.68 billion in January; N191.75 billion in February; N188.89 billion in March; N199.85 billion in April; N191.57 billion in May and N182.11 billion in June. Besides, in July, total revenue collected was N193.96 billion, while August collection was N191.11 billion
This means that the power distribution companies collectively raked in a total of about N1.517 trillion in the first eight months of this year, compared to N1.053 trillion in the eighth months to August 2024, representing a N464 billion increase over the same period last year.
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The turnaround marks the strongest nominal financial performance for the distribution segment of the electricity value chain since Nigeria began the power sector reforms over 12 years ago, specifically in 2013 when the sector was privatised.
Although the Discos maintain that the collection is still not enough to end the illiquidity in the sector, however, it is a significant improvement on past revenue collection performances by the power utilities.
In the past, the Discos struggled with weak collections, mounting debts to the Transmission Company of Nigeria (TCN) and the Generation Companies (Gencos), as well as chronic customer dissatisfaction over poor supply. But the latest figures suggest that recent policy shifts are beginning to translate into stronger financial flows across the electricity value chain.
A major reason for the improvement in revenue has been the upward adjustment in electricity tariffs, especially for Band 'A' customers who enjoy a minimum of 20 hours of power supply daily. The increase was approved in April 2024, a key factor underpinning the revenue surge.
Before the adjustment, many Discos lamented that they were forced to sell electricity below the cost of procurement from the bulk trader, deepening liquidity shortfalls. NERC has argued that new tariffs, though a difficult decision, were necessary to sustain investment, attract financing, and guarantee more reliable supply.
The total revenue in the period is higher than the N1.053 trillion generated in the first eight months of 2024 by the distribution companies. Broken down, it showed that in 2024, N95 billion was generated in January out of N130.92 billion billed for the month.
Similarly, the sum of N97 billion was collected in February out of the projected N113 billion; N100.44 billion was generated in March out of N126.56 billion billed; N142.92 billion was made by the Discos in April out of N178.72 billion, and N139.23 billion was generated in May out of N191.65 billion billed for the month.
Besides, in June 2024, the revenue increased to N150.86 billion out of an estimated billing of N176.57 billion, while in July and August respectively, the distribution companies generated a revenue of N162.14 billion and N168.7 billion for that year.
In all, aside from the significant tariff increase in April 2024 as well as the rapid rollout of meters under both government-backed schemes and private financing initiatives, which have helped raise collections by the power utilities, there are also efforts to curb Aggregate Technical and Commercia (ATC&C) losses.
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According to recent sector reports, more than 800,000 new meters were deployed in recent times under the Meter Asset Provider (MAP) framework, alongside accelerated installation through the National Mass Metering Programme (NMMP). This has reduced the number of unmetered customers significantly, cutting revenue losses tied to unbilled consumption.
Besides, some Discos have invested in digital payment platforms and mobile applications, making it easier for customers to recharge, track usage, and resolve disputes. The use of electronic vending channels has minimised leakages associated with manual collection and improved real-time monitoring of cash flows.
However, despite the strong growth in revenue, concerns remain about supply shortages, affordability and service quality by the 12 electricity distribution companies.
