Nigeria's Electricity Discos Record N2.31 Trillion Revenue in 2025 Amid Declining Performance

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:

Collections peaked toward year-end, though December dipped slightly to N207.49 billion from N208.78 billion in November. Data from the Nigerian Electricity Regulatory Commission (NERC).

Declining Generation Capacity

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%.

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.