N1.36trn electricity unpaid in 2025 – Report

The Nigerian Electricity Regulatory Commission (NERC) reported that N1.36 trillion worth of electricity was lost and unpaid for in 2025. The total electricity generated in the year amounted to N3.68 trillion, but only N2.31 trillion was collected by the 11 electricity distribution companies. Of the generated electricity, N694.8 billion was lost from generation plants to the distribution companies' networks, while N669.49 billion was lost from unpaid bills to customers.

The total energy supplied by all Distribution Companies (DisCos) in 2025 was N3.68 trillion, with a billing efficiency of 81.14%. DisCos collectively recorded a billing loss of N694.80 billion due to energy theft, poor energy accounting, and inability to bill at the weighted average allowed tariff. The report highlighted that the collection efficiency stood at 77.60%, meaning for every N100.00 worth of energy billed to customers, approximately N22.40 was not recovered.

The average allowed customer tariff in Nigeria in 2025 was $0.08/kWh (approximately N124.30/kWh), which was the lowest across selected countries. South Africa had the highest average price at $0.27 or N399.73 per kWh, followed by Burkina Faso at $0.22 or N323.03/kWh. The report emphasized that the inefficient billing and collection processes have adversely impacted the financial liquidity of the industry, limiting its ability to grow and attract new investments.

DisCos' collection efficiencies varied, with Eko and Ikeja DisCos recording the highest at 87.90% and 87.89%, respectively, while Kaduna DisCo had the lowest at 45.68%.