Experts Accuse DisCos of Exploiting Consumers as Power Revenue Surges to ₦1.7 Trillion

The Nigerian Electricity Regulatory Commission (NERC) and energy sector experts are sharply divided over what is driving the rapid rise in electricity distribution companies’ (DisCos) revenue, as collections surged to ₦1.713 trillion within the first nine months of 2025.

While NERC credited the growth to improved billing systems and stronger revenue collection efficiency, industry experts insisted that the real reason lies in consumers being forced to pay for electricity they never actually used.

Data from NERC showed that DisCos generated ₦1.713 trillion between January and September 2025, representing a 27 percent increase from the ₦1.249 trillion recorded within the same period in 2024. In September alone, DisCos issued total bills of ₦241.54 billion but recovered only ₦196.26 billion, leaving ₦49.28 billion unpaid.

Quarterly reports revealed a steady revenue climb, with ₦559.3 billion generated in Q1 2025, ₦573.5 billion in Q2, and ₦581.3 billion in Q3. The regulator cited billing efficiency of 86.43 percent, revenue collection efficiency of 81.25 percent, and revenue recovery of 83.45 percent as evidence of stronger operational performance.

NERC also listed Eko, Abuja and Ikeja Electric as top-performing DisCos, while Aba recorded a 102.85 percent billing efficiency due to improved energy optimisation and debt recovery. Benin, Port Harcourt and Kano showed moderate progress, whereas Jos, Kaduna and Yola continued to lag behind.

However, Professor Wumi Iledare, an energy economist, challenged the regulator’s narrative, arguing that flawed pricing structures and estimated billing are driving revenue growth, not efficiency. He maintained that low-income households are disproportionately burdened through cross-subsidies, forcing them to pay excessively for poor or inconsistent service. He also criticised the Band pricing structure, describing it as inefficient and unjust.

A senior power sector operator, who spoke anonymously, accused NERC of failing in its responsibility to protect consumers, claiming the regulator has avoided taking decisive steps for over a decade.

Power consumer advocate Adetayo Adegbemle of PowerUp Nigeria added that Nigeria’s electricity subsidy system remains unsustainable, placing heavy pressure on national finances. He explained that the gap between cost-reflective tariffs and allowed consumer tariffs has grown into a major financial burden, forcing the government to reconsider and gradually phase out subsidies through the Service-Based Tariff policy introduced in 2020.

The growing divide between regulators and experts reflects deepening public frustration, as rising electricity bills continue to clash with widespread blackouts and inconsistent power supply across the country.