Nigerian DisCos Rake in N553.63bn in Q1 2025 Amid Worsening Power Supply Issues

Nigeria’s electricity distribution companies (DisCos) collected a total of N553.63 billion in the first quarter of 2025, despite persistent public complaints about erratic power supply, widespread outages, and inefficient billing practices. This revenue figure, reported by the Nigerian Electricity Regulatory Commission (NERC) in its Q1 2025 report, represents an increase of N43.79 billion compared to the N509.84 billion collected in the final quarter of 2024 — a rise of 8.59 per cent.

The revenue boost came even as consumers faced unreliable electricity marked by frequent supply fluctuations and grid frequency instability. The report noted that while electricity generation improved slightly from 9,289.95 Gigawatt-hours (GWh) in Q4 2024 to 10,304.47GWh in Q1 2025, the increase was minimal when measured against growing demand. A significant portion of the generated power was either lost during transmission or not billed at all.

According to NERC, DisCos received 8,169GWh from the national grid but only billed consumers for 6,631.92GWh. This translated to a drop in billing efficiency, from 83.66 per cent in Q4 2024 to 81.18 per cent in Q1 2025. Furthermore, collection efficiency — the rate at which billed amounts were actually recovered — declined to 74.39 per cent. This indicates that nearly N191 billion worth of billed energy was not paid for by customers during the quarter.

The report also revealed that overall aggregate technical, commercial, and collection (ATC&C) losses rose to 39.61 per cent, almost double the industry target of 20.54 per cent. These figures highlight systemic inefficiencies even as electricity consumers express frustration over paying higher bills for unreliable service.

Despite these setbacks, the report confirmed that Nigeria’s national grid recorded no system collapses between January and March 2025. This marked the first quarter in recent years without a single collapse, following 12 nationwide grid failures in 2024 that had disrupted homes and businesses. NERC acknowledged the absence of grid collapse but also flagged persistent violations of key technical benchmarks.

Power Instability Persists Despite Grid Improvements, NERC Warns

In particular, the report pointed to instability in grid frequency, noting that the average lower daily frequency stood at 49.28Hz and the average upper frequency at 50.77Hz — both outside the permissible range of 49.75Hz to 50.25Hz. These deviations, according to NERC, could pose risks to industrial equipment and the stability of grid operations.

Voltage levels were also flagged as problematic. The commission noted that the average lower daily system voltage was 296.56kV, while the average upper daily voltage reached 346.82kV. Both figures fell outside the grid code’s acceptable range of 313.50kV to 346.50kV. NERC said it continued to engage the System Operator to address these deviations and reduce the risk of broader system failure.

While the Transmission Company of Nigeria (TCN) may regard the quarter’s stability as a technical milestone, NERC stressed that the overall quality and reliability of the grid still fall short of expectations. “The commission continues to push the SO to improve its system coordination activities to avert the system risk posed by the continuous operation of the grid outside the normal operating limits,” the report stated.

Meanwhile, power users across the country continued to face erratic electricity supply throughout the quarter, underscoring the gap between rising revenues for electricity providers and the declining quality of service for consumers.

As Nigeria’s power sector faces ongoing challenges despite rising revenues, it’s more important than ever to stay engaged, informed, and empowered. 👉 Visit LouisaOlaniyi.com.ng for expert analysis, breaking updates, and thoughtful commentary on the issues that matter to you.