Nigeria Discos Revenue Soars N610B Amid Power Slump
Elijah TobsBy Elijah Tobs
News
May 7, 2026 • 9:41 AM
4m4 min read
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Source: Pexels
The Core Insight
Nigeria's Electricity Distribution Companies saw revenues climb to N2.31 trillion in 2025, a N610 billion jump from 2024, driven by higher billing and Band A tariffs, yet collection efficiency hit 77.38% with N684 billion uncollected. Despite this, generation capacity dipped to 5,400 MW, Plant Availability Factor at 39.64%, with hydropower gains offsetting thermal declines, highlighting a stark revenue-service disconnect amid infrastructure woes.
As the founder and primary investigative voice at Kodawire, Elijah Tobs brings over 15 years of experience in dissecting complex geopolitical and financial systems. His work is centered on the ethical governance of emerging technologies, the shifting architectures of global finance, and the future of pedagogy in a digital-first world. A staunch advocate for high-fidelity journalism, he established Kodawire to be a sanctuary for deep-dive intelligence. Moving away from the ephemeral nature of modern headlines, Kodawire delivers permanent, verified insights that challenge the status quo and empower the global reader.
Nigeria's Electricity Discos Record N2.31 Trillion Revenue in 2025 Amid Declining Performance
Nigeria's Discos revenue surges amid service challenges (Credit: Daggash Farhan via Pexels)
Electricity Distribution Companies (Discos) in Nigeria recorded a N610 billion increase in revenue in 2025, reaching N2.31 trillion, up from N1.7 trillion in 2024 and N1 trillion in 2023. This growth occurred despite persistent declines in key performance indicators across the power value chain, highlighting concerns over the disconnect between consumer payments and service delivery.
The revenue surge coincided with the implementation of the ‘Band A’ policy, even as generation constraints, infrastructure limitations, and service inefficiencies persisted. For deeper reforms, see Nigeria's innovation push.
Billing and Collection Efficiency
Discos issued N3.025 trillion in electricity bills in 2025 but collected N2.311 trillion, achieving a collection efficiency of 77.38%. This left N684.41 billion in uncollected revenue, underscoring liquidity challenges in the Nigerian Electricity Supply Industry (NESI), mirroring broader fiscal pressures.
Quarterly collections showed steady growth:
Quarterly collections trend for Nigeria's Discos (Credit: DΛVΞ GΛRCIΛ via Pexels)
Declining generation capacity at Nigerian power plants (Credit: Bl∡ke via Pexels)
Average available generation capacity of grid-connected power plants dropped 0.55% to 5,400.38 megawatts in Q4 2025 from 5,430.34 megawatts in Q3. Of 28 plants, 17 recorded declines, including Ibom Power, Geregu, Omotosho, Ihovbor, and Afam. Alaoji power plant remained completely unavailable with zero capacity, as per Energy Supply Industry reports.
Hydropower plants showed mixed results: Shiroro declined due to maintenance, while Kainji, Jebba, and Zungeru improved, driven by seasonal water level increases during the rainy period.
Plant Availability Factor and Generation Output
The average Plant Availability Factor (PAF) was 39.64% in Q4, down slightly from 39.86% in Q3, meaning over 60% of installed capacity was unavailable. Only nine plants exceeded 50% availability, with Zungeru and Ikeja at full capacity; Ibom Power recorded just 2.16%.
Low plant availability factor in Nigeria's grid (Credit: Arthur Shuraev via Pexels)
Despite this, average hourly generation rose 6.55% to 4,452.71 megawatt-hours per hour, with total generation increasing to 9,831.58 gigawatt-hours (+604.01 GWh). Hydropower plants drove the growth with a 25.85% rise in average hourly generation (led by Kainji, Zungeru, and Jebba), while thermal plants declined 2.72%.
The divergence between rising revenues and weakening technical performance has raised scrutiny over tariff structures and service delivery, as consumer complaints about erratic supply, estimated billing, and infrastructure failures continue amid doubled electricity spending over two years and no corresponding investments in the power chain. See World Bank Nigeria updates for context.
