Power sector loses N1.36tn to revenue leakages – NERC

In 2025, Nigeria's power sector experienced a revenue loss of approximately N1.36 trillion due to billing and collection inefficiencies. The Nigerian Electricity Regulatory Commission (NERC) reported that distribution companies failed to bill consumers for N694.8 billion worth of electricity and also failed to collect N669.5 billion from existing bills.

Of the N2.99 trillion billed, the distribution companies collected only N2.32 trillion, resulting in a collection efficiency of 77.60 percent. The energy accounting efficiency, which measures the amount of electricity supplied versus billed, was 82.77 percent. Ibadan Distribution Company achieved the highest energy accounting efficiency at 88.84 percent, while Enugu had the lowest at 72.18 percent.

Former senator and businessman, Ben Murray-Bruce, criticized the country's electricity privatization, stating that it had failed to deliver the investment and reliability promised to Nigerians. He argued that investors acquired electricity assets without the financial capacity to rebuild and expand them, leading to commercial losses in the power sector.

The weighted average aggregate technical, commercial, and collection loss across the distribution companies stood at 37.03 percent in 2025, exceeding the 20.54 percent target set by the 2025 Multi-Year Tariff Order.