Nigeria’s electricity distribution companies (DisCos) recorded higher earnings in the third quarter of last year, despite frequent power blackouts.
Data released by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday shows that the DisCos generated a combined revenue of N570.25 billion — a 22% increase compared to the same period last year.
The revenue growth came despite a drop in energy actually billed to customers, which declined to 6,158.54 gigawatt-hours from 6,449.82 GWh in the previous quarter.
Ikeja Electric posted the highest collections at N117.08 billion, followed by Eko Electricity Distribution with N101.11 billion and Abuja Electricity Distribution with N90.73 billion.
NERC said the sector achieved a collection efficiency of 80.7%, leaving a gap of N136.36 billion between bills issued and money recovered — reflecting persistent challenges such as electricity theft, estimated billing and weak infrastructure.
Only about 55% of Nigeria’s 12 million registered customers currently have prepaid meters.
During the quarter, 228,614 meters were installed, mainly through the government’s Meter Asset Provider scheme.
According to the report, the rise in revenue is largely driven by tariff adjustments rather than improved power supply.
Government subsidies also remained significant, with the federal government covering N458.75 billion to bridge the difference between cost-reflective tariffs and what consumers pay.
Analysts warn that without major investment in power generation and transmission, increased collections alone will not resolve Nigeria’s electricity problems.
The country still generates only about 4,000 megawatts on average for a population of more than 200 million, leading many households and businesses to depend on costly generators